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Claiming Tax on Investment Property

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  • Claiming Tax on Investment Property


    I have two questions with regards to claiming tax on investment properties.
    1. I bought a property in NZ. However after working for 2 years in NZ, I moved to Australia and living in Aus now. Can I claim tax in NZ (or in Aus for that matter) on my investment property? I have no source of income in NZ. I know the logic doesn't fit (working in Aus and trying to claim tax back in NZ) but you never know. Can someome pls advice?

    2. This is a general question. Is it possible to avoid paying tax back when selling an investment property?

    Thanks & Regards
    My training philosophy, "Body is evil and must be punished!!"

  • #2
    Regarding Q2 - you don't pay NZ Capital gains tax on properties purchased with the intention of keeping them long term.

    If you have claimed depreciation, and wish to avoid depreciation clawback, then you'll need a skilled chattels valuer to work with.

    There may be capital gains rules that apply in Aus if you are now resident there for tax purposes.



    • #3
      Number 2 has been answered so my attempt at number 1.

      As you have a rental property you will have to complete a NZ tax return. If you have profit, you pay tax - if you have loss you can either offset against other NZ income or if non or insufficient, the losses will be carried forward until used or you die (which ever comes first).

      In relation to claiming it in Australia, you will need to talk to your Australian advise. Are they owned personally or in a company. If personally, you will probably need to figure out it profit or loss under Australian rules, if profit pay tax, if losses (not sure, you may be able to use them or you may have to wait till you have other NZ income to offset them against- ie ring fenced to NZ income). If company, it should be left alone until dividend is paid but depends on their CFC (controlled foreign company) rules.


      • #4
        Thanks guys for the advice. I may have to contact a local accountant and get their opinion on this matter.
        My training philosophy, "Body is evil and must be punished!!"