Losses on overseas rental
Question from Rosanne updated on 5th April 2012:
Our expert Mark Withers responded:
If you had been away 10 years you would qualify for a four year exemption from declaring foreign income. Having been away five the foreign rent is assessable and if a loss is made it is deductible. If you pay interest on a foreign loan you should consider registering for approved issuer levy which is a cheaper alternative to paying non resident withholding tax on the foreign debt. Foreign exchange fluctuations on the debt can also impact the tax position. Seek advice from a chartered accountant
Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.