Hi guys,
Just after a quick tax answer from someone who can work it out. I am thinking of going overseas to volunteer. Therefore quitting my job and having no income, except from my current PPOR and an investment unit. (i plan on renting a room at a mates house soon, before i leave, so my PPOR will become full rental property.
A quick number crunch, i would get approx 22k per annum from rent for the 2 properties.
My expenses on loan repayments etc would be about 26k – 29k per annum.If that 22k was my ONLY income, what could i expect to get back at tax time? Being that i'm about 4 – 7k out of pocket.
Anyone with a rough number and how that would work? Much appreciated, thanks!
Sorry to be the bearer of bad news, but you'll get nothing back.
The reason is that you won't have PAID any tax on your rental income. You can only get a refund of tax if you have paid some tax in the first place.
Your negative taxable income does accrue, so if your away for 3 years, and your taxable income is -$4k a year. Then in the year you return your first (3years x $4k) + $15k = $27k taxable income will be tax free..
So i wouldn't have to declare any income from properties while i wasn't working? Is that the general thing here?
I'm guessing it opens a whole new can of worms if i was getting paid to work in a foreign country but not a citizen of that country?
not quite…
You still need to lodge a tax return showing your rental income and expenses, which will result in a negative taxable income.
Re: working, it’s certainly a can of worms. There’s a number of implications to earning both Australian income and “Foreign Source Income”, too many to mention here. Long story short, its unlikely that your FSI will effect the outcome (amount payable / refundable) of your Australian Tax Return.
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