Hi All,
I'm an Australian currently living in London. I want to purchase an IP back home in the not too distant future.
Question 1: If I don't have any Australian income other than rent and incurr a loss (ie interest, expenses, depreciation etc… are greater than rent) can I carry that loss forward to when I come back to Aus and start earning a salary?
Question 2: If the answer to the above is yes, how long can I carry these losses forward for?
Many Thanks.
I am not qualified to answer, but I think you can roll over income losses from year to year without limit – until your income wipes them out.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Yes, you can roll it forward – I effectively rolled 3 years worth of losses into one year for exactly the same reason. But you should time it better than I did – I came back to Australia in November and didn't start work until early Feb, plus I worked on a 1 month in arrears basis for pay (so didn't get paid until early March). So in effect I was only paid for around 4 months of the financial year.. so although I had some great deductions, I don't think I even broke into the 40% tax bracket for that financial year.
While I was away (5 years), I also didn't submit a tax return. I just had my account submit them all at once when I returned. I don't know if that makes a difference or not..
Cheers, thanks for the info all – much appreciated!
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