All Topics / Overseas Deals / tax on overseas rental income

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  • Profile photo of freeman cooperfreeman cooper
    Member
    @freeman-cooper
    Join Date: 2006
    Post Count: 115
    July 23, 2006 - 1:19 pm

    Hi Guys,
    Can anyone tell me any creative ways of minimising the tax paid on rent received from overseas properties.
    I am thinking of setting up my property business in a tax haven.

    Regards
    Frank

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213
    July 25, 2006 - 6:06 am

    Usually people just don’t tell the ATO! but this would be illegal of course.

    Have a look at the story on Hoges in todays SMH. http://www.smh.com.au/news/national/crocodile-dundees-tax-trail/2006/07/24/1153593272499.html

    Terryw
    Discover Home Loans
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Profile photo of Don NicolussiDon Nicolussi
    Participant
    @don
    Join Date: 2005
    Post Count: 1,086
    September 21, 2006 - 9:56 pm

    Hi Frank,

    There are plenty of ways to go offshore but you really need to work out the cost of set up versus real gain. Tax avoidance is avoidance so anything you do to get out of paying won’t fly. You need a legitimate reason.

    Alot of people do it. I have just done some company searches on a few “motivational type” orgainisations and 2 steps removed they are firmly located in a tax haven trust structure – no assest held that could be touched in a legal action. But that was just being nosy.

    Talk to your accountant – depreciation???? surely your paper deductions will be significant if you are investing in NZ up to 4% on build and you can write building off from day one at the value of the building at the time you buy it. eg building and land 200k. land value 50k. your depreciation write off starts at day one at 4% of 150k so that is a possible 6k paper deduction in year 1- don’t know how it works in the usa.

    http://www.ird.govt.nz/resources/file/ebbd7e41823cfbe/ir265.pdf

    Sourcing Positive Cashflow Investment Property http://www.cashflowproperties.co.nz/properties-5.html

    Don Nicolussi | Mortgage Broker - Home Loan Warehouse
    http://homeloanwarehouse.com.au
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    "I think of finance as a technology, a way of getting things done." Robert Shiller

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