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investment properties in Australia, working in Singapore

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Ives
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investment properties in Australia, working in Singapore

Postby Ives » Mon, 13 Feb 2006 3:18 pm

I'm relocating to Singapore for work in a couple months and have 2 investment properties in Sydney that I am currently negative gearing.

Income tax in Singapore is obviously much better than in Aust, however I'll lose the ability to negative gear the interest on my investments.

Is there a good way to manage this or should I just grin and bear it and hope the lower income tax will offset the lost negative gearinf returns? :?

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fsc
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Re: investment properties in Australia, working in Singapore

Postby fsc » Mon, 13 Feb 2006 5:00 pm

Ives wrote:I'm relocating to Singapore for work in a couple months and have 2 investment properties in Sydney that I am currently negative gearing.

Income tax in Singapore is obviously much better than in Aust, however I'll lose the ability to negative gear the interest on my investments.

Is there a good way to manage this or should I just grin and bear it and hope the lower income tax will offset the lost negative gearinf returns? :?


disclaimer: i'm not a tax consultant or even a tax consultant in training. if you take my advice, chances are you'll be audited by the ATO and sent to jail. :-)

with that out of the way... my understanding is that if you're australian resident (domiciled) for tax purposes then you will accrue your loss across years. that is, if you're negative gearing causes a loss of $10k per year, and you stay o/s for 2 years, upon your return that loss is accrued against your next year's australian earnings.

don't take my word for it though, speak to an australian tax accountant for the real low-down. there's so many arguments for and against being resident vs. non-resident for tax purposes, you should really speak to a tax accountant anyway to understand what position you should take.

hth...
Feeling frisky, are we?

Ives
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Postby Ives » Thu, 16 Feb 2006 2:11 pm

thanks fsc!

...i've since checked with a tax agent and you are spot on

just in case others are interested, you lodge a return each year in Australia for the rental income and the negative gearing loss accrues over the years you are away

when you get back you have a massive loss that wipes out your tax essentially until the accrued loss is all used up


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