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[b]Non-resident Investor Tax Query[/b]

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  • [b]Non-resident Investor Tax Query[/b]

    I am a Kiwi currently living and working in London. I would like to purchase an investment property in New Zealand and would really appreciate some advice regarding my tax situation if I was to purchase a negatively geared property. As I have no current income in NZ would any taxable loss I make on the property result in an actual cash refund from the IRD or is the benefit just lost because I have no other income earned in NZ? Any advice would be really appreciated.[/b]

  • #2
    No cash refund. The IRD only refunds actual tax paid.

    The losses will however carry forward, if in your own name for ever (well until you no longer around to care). So no immediate benefit but will accumulate over time and be utilised if/when you return to NZ.

    Depending on how much you earn when you return, and how far through the tax year, these losses may be used against low marginal tax rate rather than high where it is benificial. ie: you come back and are on 75k so 15k is taxed at 39%. However return half way thorug the year so only earn $37.5k. If you have 15k of losses accumulate over the part however years, they will all be utilised at a rate of 19.5 rather than 39% if you return for a full tax year ($2925 tax benefit rather than $5,850). Just something to remember.


    • #3

      We provide solutions that meet the investment and tax criteria of overseas investors. These solutions are based on Discretionary Trusts.

      I am sending to your private email a couple of investment analyses that we use to demonstrate the opportunities. These are attachments, so cannot be added to this message.

      So check your private email for some options.