Living overseas with family home rented in NZ

[elliot]

If I work in Australia for 2 years and rent my home out in Auckland is tax paid on my NZ home in NZ or Australia?

[eri]

Afaik if the money is earned here it should be taxed here

However if it easier for you to list it as Australian earnings on an Australian tax return both tax offices will accept that

The modern thinking is that as long as you have paid tax somewhere you're covered

[Rosco]

Hi Elliot,

1) The rent is NZ income. So the entity who owns your NZ home would need to return the income and claim any expenses in NZ tax returns. Then pay tax on the profit in NZ.

2) Not my area, and best to talk to Aussi tax advisor. My understanding, if your home is in your personal name, then if you become an Australian Tax resident, then the NZ rental profit would also need to be returned in Aussi, with a credit for any NZ tax paid.

Ross

[Rosco]

However if it easier for you to list it as Australian earnings on an Australian tax return both tax offices will accept that

The modern thinking is that as long as you have paid tax somewhere you're covered

This is not correct. NZ IRD and government want the NZ tax!

Ross

[elliot]

Thanks Rosco. If you pay tax in NZ on your rental and it runs at a loss is that used to reduce your taxable income in Aiustralia?

[Beano]

Hi Elliot,

1) The rent is NZ income. So the entity who owns your NZ home would need to return the income and claim any expenses in NZ tax returns. Then pay tax on the profit in NZ.

2) Not my area, and best to talk to Aussi tax advisor. My understanding, if your home is in your personal name, then if you become an Australian Tax resident, then the NZ rental profit would also need to be returned in Aussi, with a credit for any NZ tax paid.

Ross

Which are you ?
Permanent tax resident ...taxed on worldwide income
Temporary tax residents. ..local income only

https://www.ato.gov.au/Individuals/International-tax-for-individuals/In-detail/Foreign-income-of-Australian-residents/Foreign-income-exemption-for-temporary-residents---introduction/

[Beano]

Thanks Rosco. If you pay tax in NZ on your rental and it runs at a loss is that used to reduce your taxable income in Aiustralia?

Why do you pay tax on your NZ property when you make a loss ?
Is the tax you are paying in NZ income tax ? (Not FB tax which you would still have to pay even if you lose money )