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Reporting foreign property sale

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Newbie

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Hi there
I am an Australian tax resident and I own a US single member limited liability company (SMLLC). I recently sold a rental property owned in the SMLLC name. I have filed personal returns in the US for the rental income as the SMLLC is a pass through entity. The IRS doesn't require a separate company tax return as I am the sole owner. All activities that occur are reported on my individual return in the US.

Would I need to report any profit/loss/capital gains from the sale & rental income on my personal ATO return? The property was owned for 3 years and reported a loss 'on paper' each year.

Thanks in advance
Jay
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ATO Certified

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Hi @Jayess

 

Welcome to our Community!

 

@BeFree has provided some helpful information and as we can provide you with general information here on our Community we'd recommend writing in to request a private ruling as your situation is more complex. Private rulings is binding advice that sets out how tax law  applies to you.

 

Thanks, JodieH.

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Enthusiast

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If you are an Australian resident for Tex purposes and you earn income from another country you generally need to declare it as foreign income in your Australian tax return.

See here: https://www.ato.gov.au/Individuals/Income-and-deductions/Income-you-must-declare/Foreign-income/

Here is some info on declaring a capital gain from a foreign asset: https://www.ato.gov.au/Individuals/Income-and-deductions/Income-you-must-declare/Foreign-income/#cap...

I’m not sure if the fact the asset was not in your name makes a difference or not. In the end it is you who earned the income,

Hopefully someone else can give advice on this part of your question. Or if you are still unsure you can ask the tax office for a private binding ruling tailored to your situation.
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Enthusiast

Replies 0

If you are an Australian resident for Tax purposes and you earn income from another country you generally need to declare it as foreign income in your Australian tax return.

See here: https://www.ato.gov.au/Individuals/Income-and-deductions/Income-you-must-declare/Foreign-income/

Here is some info on declaring a capital gain from a foreign asset: https://www.ato.gov.au/Individuals/Income-and-deductions/Income-you-must-declare/Foreign-income/#cap...

I’m not sure if the fact the asset was not in your name makes a difference or not. In the end it is you who earned the income,

Hopefully someone else can give advice on this part of your question. Or if you are still unsure you can ask the tax office for a private binding ruling tailored to your situation.
Highlighted

Best answer

ATO Certified

Community Support

Replies 0

Hi @Jayess

 

Welcome to our Community!

 

@BeFree has provided some helpful information and as we can provide you with general information here on our Community we'd recommend writing in to request a private ruling as your situation is more complex. Private rulings is binding advice that sets out how tax law  applies to you.

 

Thanks, JodieH.