Hi,
posted this question in 'Finance,' then realised this is probably the right place. Could anybody tell me if 'wasted' claims/deductions/negative gearing (because we don't pay enough tax to make the most of our losses,) actually accumulate until a year when you do pay a bundle of tax? A friend said she believed that to be the case, but it seems to good to be true. Anyone??
Thanks,
ShereeTwo examples.
1. Taxable income afterr tax deductible losses on property is greater than zero, there is no tax loss to carry forward
eg Income $20,000Losses $19,000
Taxable income $1000 There is no loss to carry forward
2. After deduction of losses there is a tax loss
eg Income $20000
Losses $21000
Net Loss $1000 – $1000 can be carried forward as a loss until your taxable income is greater than zero
You can only claim deductions for negative gearing or whatever in the tax year they happen ie you cannot wait to claim them till asubsequent tax year
As an Expat (non-resident) negative gearing, the annual deficit has nothing to offset so simply accumulates each year to be used in the future…"tax credits".
You will need to find a 'specialised' taxation accountant, it took me 3 attempts.
2 of the accountants I meet with were unfamiliar with "tax credits", the other accountant was familiar but quoted $3000 for a tax assessment, plus "5% administration, overheads and telecommunication charges"…???…that taxation specialist was too 'specialised' for my budget.Try this website
It's a taxation service that specialises in Expats, they maybe able to help with your situation or may point you in the right direction.
I'm interseted to hear what happens, if it is possible for your situation.
Best regards ToWhomItMayInterest
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