All Topics / Legal & Accounting / Do we need to pay tax in AUS if investing OS?

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  • Profile photo of shongshong
    Member
    @shong
    Join Date: 2004
    Post Count: 5
    March 8, 2005 - 8:06 am

    Hi all,

    I have a couple of properties in NZ and US and they are all +ve cashflow. Currently, the “surplus” $$ is kept in the account in NZ/US and only used for repairs or emergencies for the house itself. Normally, by the end of the year, there will be none left. Thus, technically, I do not get the “extra income” for these houses.

    Do I have to declare this to the AUS tax office? or just declare at the local country and pay the local tax? Some said if you are not claiming for depreciation or interest from finance for tax benefits, then you should be fine, is that true?

    I am sure a number of people here have multiple properties overseas, any advise from the tax point of view (especially for NZ or US properties) would be greatly appreciated.

    Thanks so much

    Quick Learner

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    March 8, 2005 - 1:40 pm

    Yes you will be require to declare your worldwide income to the ATO. But due to the double tax agreements, you should not have to pay tax twice, and will therefore get a rebate for tax paid overseas. It will be a pain in the butt trying to work out how to fill in the tax return etc.

    Terryw
    Discover Home Loans
    Mortgage Broker
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of shongshong
    Member
    @shong
    Join Date: 2004
    Post Count: 5
    March 9, 2005 - 1:41 am

    Thanks for the reply. I thought that would be the case.

    Does anyone has a good tax accountant that they can recommend? We live in Sydney.

    We find it hard to find a good accountant who doesn’t charge a very high fee. We had an accountant who did our tax at a $300 + $100 per investment property. Imagine if you have 10 properties, it will cost you $1300 to get your tax done, that is ridiculous.

    We used to do the tax returns ourselves but it gets a bit too complicated when it involves a number of OS properties and so on…

    Any recommendation is greating appreciated.

    Thanks

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    March 9, 2005 - 5:36 am

    Your accountant’s fees sound reasonable

    Terryw
    Discover Home Loans
    Mortgage Broker
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 4 posts - 1 through 4 (of 4 total)

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