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Re: Foreign property expenses

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I have a property in the UK which is rented and we fill out a UK tax return for the income derived.  The property has a mortgage.  In the UK recent changes to expenses claimable have reduced the amount claimable for interest on home loans.  Can this interest expense be claimed on the Aussie return ?     Overseas property depreciation is claimable on aus return i understand

 

cheers .  

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ATO Community Support

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Hi @richardhunt2002 ,

 

Thanks for getting in touch.

 

Rental income from overseas property

You must include rental income from overseas properties in your Australian tax return.

 

This income is the full amount of rent and associated payments you receive or become entitled to when you rent out your property. It doesn't matter whether it's paid to you or your agent.

 

If you've paid tax in another country on your rental income, you can claim a foreign income tax offset (FITO) in your Australian tax return.

 

Rental property expenses to claim

             If you take out a loan to purchase a rental property, you can claim a deduction for the interest

             charged on the loan or a portion of the interest. However, the property must be rented out or

             genuinely available for rent in the income year you claim a deduction.

 

For completing your tax return to include foreign rental income, claim the FITO and deductions please see:

myTax 2020 Other foreign income

 

I hope this helps and let us know if you have any further questions,

JasonT

1 REPLY 1

Most helpful response

ATO Community Support

Replies 0

Hi @richardhunt2002 ,

 

Thanks for getting in touch.

 

Rental income from overseas property

You must include rental income from overseas properties in your Australian tax return.

 

This income is the full amount of rent and associated payments you receive or become entitled to when you rent out your property. It doesn't matter whether it's paid to you or your agent.

 

If you've paid tax in another country on your rental income, you can claim a foreign income tax offset (FITO) in your Australian tax return.

 

Rental property expenses to claim

             If you take out a loan to purchase a rental property, you can claim a deduction for the interest

             charged on the loan or a portion of the interest. However, the property must be rented out or

             genuinely available for rent in the income year you claim a deduction.

 

For completing your tax return to include foreign rental income, claim the FITO and deductions please see:

myTax 2020 Other foreign income

 

I hope this helps and let us know if you have any further questions,

JasonT