How do we manage USA property income/expense in Australian tax. My understanding is– I don't include any USA property income/expense in my OZ tax return this year, then
– I lodge my USA tax return in Jan 2012, then
– Next year when in July 2012 when I lodge my OZ tax return – I include USA tax return, income, expense which I lodged in Jan 2012 as an offset in my OZ tax in July 2012
I think you are supposed to claim expenses when they are incurred. ie in the tax year incurred.
International tax is a complex area and it will likely cost you a fortune to get your taxes done properly. Have you got a tax agent handling this for you?
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
PropertInvestor,
I think you are more or less right.As US investors, we still may have to pay tax in Aus on our US income.
However, because we can get tax credits for tax paid in USA, it seems logical that US income has to go thru the IRS before we declare it to ATO.In my perception, we can't claim US expenses against Aus income, only against US income.
I must state, I am just an investor in the learning process, so my comment is opinion only!
Steve’s USA Power Pack contains some great information in regard to taxation but as always you need to discuss this with your accountant. Forget it being U.S. income, it’s just Foreign income and your accountant should be able to clarify this for you.
G'day
I know this post is a couple of years old but I'm confused about claiming expenses in my 2012/13 Australian tax return.
Question: Do I claim Australian dollar expenses (eg bank fees & interest charged) in my Australian tax return 2012/13 or wait until the end of 2013 and claim it in my USA tax return?
Cheers
Luke
Hi Luke
Yes they would be claimed as an expense in your Australian Tax Return.
Your US income would be declared however you would get a credit for tax paid in the US.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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