Hi There,
I came to Australia as temporary resident initially and I had an oversea property that time. I just sold the property recently, but sold price was dropped dramatically compared to the time I came to Australia.
May I have some help to clarify if I can claim negative gearing on this case? If so, how could I calculate the loss? Thanks!
Thanks & Regards
If you are still a temporary resident then the CGT event is not declared.
A CGT event is calculated by deducting cost base from sale price. Cost base can consist of 5 elements. Element 1 is acquisition cost. When changing tax residency the acquisition cost on overseas property is market value of property on date you become a tax resident (permanent not temporary).
See this link for other elements
All foreign currency amounts have to be converted to AUD.
If you have a significant CGT event happening it is often advisable to seek professional tax advice (from a tax agent) for the calculation. This is done at the same time as your tax return is prepared then lodged.
Sorry, I think I meant to ask "capital loss" instead of "negative gearing". Thanks.
If you are still a temporary resident then the CGT event is not declared.
A CGT event is calculated by deducting cost base from sale price. Cost base can consist of 5 elements. Element 1 is acquisition cost. When changing tax residency the acquisition cost on overseas property is market value of property on date you become a tax resident (permanent not temporary).
See this link for other elements
All foreign currency amounts have to be converted to AUD.
If you have a significant CGT event happening it is often advisable to seek professional tax advice (from a tax agent) for the calculation. This is done at the same time as your tax return is prepared then lodged.
Thanks a lot. That explains.
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