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Re: Foreign Rent Loss

Initiate

Views 3987

Replies 12

Have foreign rental property, rental income minus all relevant expenses results rental income in loss. Is this loss can be claimed against other Australian income like negative gearing property situated in Australia?

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Former Community Support

Replies 11

Hi @Annt and thanks for posting.

 

Any income from an overseas asset is considered foreign income. You can claim the expenses as a deduction. This data should not be entered in the normal "rent" section of the tax return, as this section only relates to rent sourced from Australian properties.

 

The correct fields to enter this information is the "Foreign income, assets and entities" field. You will be able to add foreign rental income. It will ask for gross foreign rental income, deductible expenses and any foreign tax paid.

 

If you had a loss for the year, this does function the same way as negative gearing in Australia.

 

You can find more information about foreign income and foreign rental income here.

 

All the best!

12 REPLIES 12

Most helpful response

Former Community Support

Replies 11

Hi @Annt and thanks for posting.

 

Any income from an overseas asset is considered foreign income. You can claim the expenses as a deduction. This data should not be entered in the normal "rent" section of the tax return, as this section only relates to rent sourced from Australian properties.

 

The correct fields to enter this information is the "Foreign income, assets and entities" field. You will be able to add foreign rental income. It will ask for gross foreign rental income, deductible expenses and any foreign tax paid.

 

If you had a loss for the year, this does function the same way as negative gearing in Australia.

 

You can find more information about foreign income and foreign rental income here.

 

All the best!

Newbie

Replies 10

Hi,

Can the foreign rental expenses be claimed as deductions on the Australian returns even if they have been claimed on the overseas tax returns already?

ATO Community Support

Replies 9

Hello @raj_paras

 

If you paid tax in another country on income you received, you may be entitled to an Australian foreign income tax offset which stops you paying tax twice. You would need to refer to section in your tax return: 20 Foreign source income and foreign assets or property 2020


You may also need to look at: D15 Other deductions

 

Hope this helps Smiley Happy

Newbie

Replies 8

Hi TonyATO

Thanks for the reply.

I am aware that any tax paid overseas can be claimed as an offset on the Australian tax returns.

My query was more related to claiming deductions for expenses incurred in maintaining the overseas rental property.

If the said expenses had been claimed as deductions on the foreign tax returns, can they be claimed as deductions again on the Australian tax returns?

 

ATO Community Support

Replies 0

Hello @raj_paras

 

My apologises. I misunderstood your question.

 

I am seeking clarification for you and will provide a response ASAP.

 

Thank you for your patience.

ATO Community Support

Replies 6

Hello @raj_paras

 

Unfortunately I have been unable to find a definitive answer for you. It seems to be a bit of a grey area Smiley Sad

 

I recommend sending an advice request via email using the form on our website and we will get back to you.

 

Thank you again for your patience and understanding.

Newbie

Replies 5

Hi TonyATO,

Thanks for the update.

I clicked on the link to submit an advise request but the PDF doesnt open.

Could you please email the PDF document to me.

 

ATO Community Support

Replies 4

Hi @raj_paras,

 

You should try to download the document by saving the form, and then opening it from your downloads folder.

 

How to do this depends on your browser, but most should give a pop-up with an option of "Open With:" with a program choice drop-down menu, or "Save File".

Newbie

Replies 2

Hi Blake,

I have tried this & still get the same message as below, when opening the PDF.

I have now logged a request for a callback.

" Please wait...

If this message is not eventually replaced by the proper contents of the document, your PDF
viewer may not be able to display this type of document.

You can upgrade to the latest version of Adobe Reader for Windows®, Mac, or Linux® by
visiting http://www.adobe.com/go/reader_download.

For more assistance with Adobe Reader visit http://www.adobe.com/go/acrreader."