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Re: Tax and PR
Originally Posted by Kiwipaul
(Post 10420328)
You don't need a valuation each tax year as you don't have to declare it's value just the income you derive from the asset.
The exception would be if you were retired and claiming an Ozzie pension then they would want to know the value of all your assets. |
Re: Tax and PR
Originally Posted by ROMFT_WO2RN
(Post 10420330)
Good to know ta :thumbup: So I just tick the "yes" box to the question about owning a foreign asset worth more than $50k and then if it gets sold it'll just be CGT on the difference between that price and the initial becoming PR/acquisition valuation? Minus any source CGT in Ireland?
You also get a 50% CGT allowance if you hold the asset for 12 months from the time you become tax resident in Oz. Not sure how you handle the CGT liability in country of Asset. |
Re: Tax and PR
Originally Posted by Kiwipaul
(Post 10420328)
You don't need a valuation each tax year as you don't have to declare it's value just the income you derive from the asset.
The exception would be if you were retired and claiming an Ozzie pension then they would want to know the value of all your assets. Thanks everyone for the good wishes. Perth's pretty nice and I'm bumming around sailing at all the yacht clubs until I get my own boat back and head off back to the Whitsundays. Bit of tennis at Kings Park. Sort of looking for a part time job but not with any major intent. Relieved to have PR now and hopefully I can do another year (is it less 90 days)? for citizenship....:thumbsup: |
Re: Tax and PR
Originally Posted by Turban Explorer
(Post 10418582)
I'm in Subiaco - it's great (except perhaps for the flies) !! Like the Renaissance compared to FNQ. :thumbsup:
I meant it about the whinging........ |
Re: Tax and PR
Originally Posted by Turban Explorer
(Post 10420385)
Do you know if you can offset interest payments and/or home improvements on a UK mortgage against income in Australia at the end of the tax year?
Tax system here changed about 4 years ago, prior to that you had 4 different classes and expenses in one class could only offset income from the same class. |
Re: Tax and PR
Originally Posted by Kiwipaul
(Post 10420344)
Correct.
You also get a 50% CGT allowance if you hold the asset for 12 months from the time you become tax resident in Oz. Not sure how you handle the CGT liability in country of Asset. |
Re: Tax and PR
Originally Posted by ROMFT_WO2RN
(Post 10420330)
Good to know ta :thumbup: So I just tick the "yes" box to the question about owning a foreign asset worth more than $50k and then if it gets sold it'll just be CGT on the difference between that price and the initial becoming PR/acquisition valuation? Minus any source CGT in Ireland?
Don't know your circumstances but don't forget tax residency is based on criteria such as physical presence, domicile, the 183 day rule etc and not really your visa status. |
Re: Tax and PR
Originally Posted by louH
(Post 10422508)
If you want to look into it search subdivision 855-B on the ATO website, this outlines CGT consequences when you become an Australian resident.
Don't know your circumstances but don't forget tax residency is based on criteria such as physical presence, domicile, the 183 day rule etc and not really your visa status. |
Re: Tax and PR
Originally Posted by Kiwipaul
(Post 10420438)
I believe you can now offset interest payments, rates, insurance, (NOT improvements as that is a capital cost) etc for rental property abroad against your Oz income.
Tax system here changed about 4 years ago, prior to that you had 4 different classes and expenses in one class could only offset income from the same class. I also understand that it is the interest charges you can offset but no the repayment charges. I have a repayment mortgage back in UK and am renting my property out but I am losing 400 pounds a month between the mortgage payments and the rental but I don't think I can offset that. |
Re: Tax and PR
oh...BTW TE, congrats on PR...only 2 months behind me!! :)
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Re: Tax and PR
Originally Posted by paddyo
(Post 10425168)
I also understand that it is the interest charges you can offset but no the repayment charges.
Can you claim depreciation on properties in the uk?? and their contents, carpets, central heating, fitted kitchen, etc?? |
Re: Tax and PR
I'm looking into changing my Mortgage into Interest only...but I am already halfway through and feel a slight reticence to lose all of its increased value and sale value. Bit of a rock and a hard place at the moment.
The problem is I do not have enough for a deposit over here and am 50, getting a brand new mortgage from scratch makes me nervous. |
Re: Tax and PR
Originally Posted by paddyo
(Post 10426638)
I'm looking into changing my Mortgage into Interest only...but I am already halfway through and feel a slight reticence to lose all of its increased value and sale value.
If you are half way through your mortgage it means that a significent part of your payments are capital in nature and not tax deductable and so only paying interest on the balance of the mortgage outstanding will mean a significent reduction in your monthly costs. |
Re: Tax and PR
er....but if I switch to Interest Only then I will still have whats left of the Repayment at the end of the term, i.e. I will have less capital at the end. Am I missing something here? For example, a mortgage is 200000, is have re-payed 100000 (just figuratively speaking here and not realistic) so far. If I switch to a Interest Only mortgage then at the end of the term I can sell the house but still owe 100000 of the repayment loan?
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Re: Tax and PR
oh TE....have hijacked your thread here a bit...apologies!
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