SearchHow can I reduce my tax obligations?
Kirsin asks:
(updated on Friday, March 13th 2009)
Our Experts Answer:
Unfortunately, you may have missed the boat. The time to get advice would have been before you left New Zealand. As things stand now, your Tauranga property, being that it is located in NZ, is subject to NZ tax law which means that you will need to file NZ tax returns for the property.
If you do not have any NZ income, then any loss from the property will be carried forward to be offset against future year income. Any profits will have to have tax paid on them here in NZ.
As you are by now Australian tax residents, you will have to file tax returns in Australia that incude the property here in NZ. Should you sell the property while you are tax residents of Australia, it will be subject to capital gains tax. Essentially, you will end up with having to file tax returns on both sides of the Tasman.
Kenina Court is a director of Acorn Solutions Limited, an accounting firm dedicated to working with clients to help them create wealth. She is an avid property investor, entrepreneur and seminar presenter on asset protection and wealth strategies.
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