Hello,
I emigrated to Australia from the UK 8 years ago. Bought a property but before I had a chance to move into it I had to return to the UK for family reasons. The property has been rented out since then and has accumulated about a $20k loss. I am now able to return to Australia with my wife and we plan to move into the property next year, either live in it permanently (her choice) or maybe move in and fix it up for a few months and then rent it out again and travel around Australia in a 4×4 for a while (my choice!)
Please could anyone advise me what the tax implications of these decisions would be? If we lived in it permanently, would the $20k loss be tax deductible against wages earned? If we lived there a few months and then rented it out would the $20k loss accumulated so far carry forward and be deductible against future rental profits? Or does us moving in basically negate the chance of using this loss as a tax advantage. I assume as far as CGT is concerned, as its been rented more than 6 years we would have to pay full CGT on the capital value increase if we were ever to sell?
Many Thanks,
RJYou need to check with an accountant what the tax implications are of negative gearing Australian Property while being a non resident
(it is complicated not straight forward)Get the house valued or note its value when you move in have a record of it for CGT purposes.
Time line
Purchased – – – – move to uk 8 years – – – —move to Aus into house
sell in future
$$$$$$$$$$ CGT liable $$$$$$$$$$
Valuation done >>> Exempt CGT >> >>>>> 2020
eg $150,000
$300,000 >>>>>>>>>>>>>>>>>>>>>>>>$600,000150,000 capital gain taxable
$300,000 in future say in (2020) in 8 years timecgt exempt as an exampleThank you duckster. I’ll speak to my accountant
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