Hi All,
I am pursuing the idea of purchasing an investement property in New Zealand. Being based in Sydney, this brings about many challenges. If anyone can help with the following queries, I’d really appreciate it.
1. Would it be best to finance from a bank in NZ or AUS?
2. Can a discretionary trust setup in AUS purchase property in NZ?
3. Would property income be taxed in NZ or AUS?
4. Contract of sale would need to be drawn up in NZ?Thanks guys/gals
G’day…
If you do a search you’ll find a heck of a lot of discussion about your questions.
Cheers
rOkay…Sounds good, where exactly should I search?
on the left side of this web page you have your toolbar, under Forum Boards, you have the option “search”
Hope this helps
Matt
“If you do what you have always done, you will get what you have always had.”
“Isn’t it time for a change?”
Borrow from the country offering you the lowest interest rates. Usually it is the country where the property is that has the taxing rights but:
In ID2002/764 the ATO clearly states that, from 1st July, 2001 Section 160AFD allows the interest, borrowing costs etc. on an overseas rental property to be offset against Australian income to the extent that it exceeds the overseas rent received.
Note this is rental income after the deduction of other expenses such as rates, insurance and repairs. Providing they do not exceed the total amount of rent received. If the rates, insurance and repairs exceed the rent received the balance is carried forward to be offset against future foreign income and the interest is fully deductible against Australian Income.
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