Is U.S rental income double Taxed? i.e over there and here in OZ?

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

woohah76
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@woohah76
Join Date: 2014
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December 24, 2014 - 11:27 am
Just asking anyone with experience how U.S rental income is taxed if you are still an Australian resident/citizen etc?
Thanks for your insight
Nigel Kibel
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December 25, 2014 - 11:01 am
You should buy a property in a LLC you then declare and pay the tax to the IRS and you receive a tax credit and you then pay the difference between the US and Australian tax which would be added to your taxable income in Australia. Naturally you should seek independent advice.
- This reply was modified 9 years, 10 months ago by Nigel Kibel.
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woohah76
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Join Date: 2014
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December 25, 2014 - 2:23 pm
Thanks for that. Briefly, how do the deductions work? Can any expenses incurred be claimed in Australia or is it all to be claimed when paying taxes to the IRS in the state?
Redwood
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December 25, 2014 - 9:13 pm
Nigel is correct. You will need a tax return in the local jurisdiction in the states and there is a double tax agreement between US and AUS so a foreign tax credit is received to avoid double taxation.
Cheers Ivan
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