Hi all,
not sure if I have posted in the right section or not but here goes –
Basically I have one IP and can squeeze to get another 2-3 based on negative gearing.
If I was to move overseas for a job would I lose all negative gearing benefits?
Does anyone know if it's possible to structure investment property in a way that makes some form of tax deduction possible on investment property while living overseas?Thanks
Hi, your 'losses' accumulate till you have to pay tax.
So what's really happening is that you have no +ve Australian income & double taxation laws means you pay tax in the country you work. Please check this. Some countries may not have such agreements with Australia.
Therefore, you'll be supporting the -ve gearing with income earned overseas.
It can be tricky so you'll need to verify the details with a tax expert.
What I say here is based on my own experience overseas. I used to send money to cover shortfalls. The cost of telex & bank charges can be very high especially on small amounts. I used to leave a few thousand dollars in what I call a contingency fund with my property manager.
I didn't even submit a tax return for the 1st 5 years & then I did the whole lot in one go.
I paid quite low tax so it might be worthwhile for you do the same. Some countries [Singapore, HongKong, Malaysia, maybe even Japan have very LOW tax rates.] However, there's also usually a different rate for locals & expats.
Good luck,
KY
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