How do I structure my Australian assets? NZ LAQC?
Question from Fernando updated on 20th August 2007:
Our expert responded:
Whether or not you can own the Australian property through your NZ LAQC will depend on your Bank in Australia. Generally, Banks don't like assets to be owned by external entities and therefore would prefer you to own the property in your own name. As the property is in Australia and therefore has income derived in Australia, you are required to submit a tax return in Australia for the property based on Australian tax laws. You will therefore need to find yourself an Australian accountant. As you are a tax resident in NZ, you will also need to submit a tax return in NZ for the property. The loss from your property in Australia can be offset against your income here in NZ.
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.