QS Report for overseas investment property
- Thread starter jaypee06
- Start date
Depreciator has organised quite a few depreciation reports for our clients with overseas properties. Give scott a call.
This is a rarely asked question but a very good one. Its often assumed that you cant claim such costs because the oseas country tax laws don't allow it. That may be true of that country's tax laws when a person is a non-resident in AUS but a tax resident of that country. However for an AUS resident there is no requirement under tax law that says you cannot claim depn and CA on foreign construction costs...The key requirement is the qualification of the QS provider.
This issue can mean that for purposes of double taxation that the higher (+ve)income value is taxed in the foreign country. No issue really since AUS provide s a credit for the foreign tax paid and final tax is in Australia based on the lesser sum.
The key issue is ensuring the foreign income matters are handled correctly. A normal rental schedule should NOT be used. Net rent should be reported as foreign income. Net losses on foreign income may need tax advice and a specific strategy.
Most of the larger QS firms have oseas colleagues who can provide the raw data to enable a schedule to be prepared compliant with Tax Agent Services Act. Some can use the owner info. I have a guy I went to school with who owns a QS practice in Canada who has assisted and sent a few clients my way. When he realised he could offer tax deductions to aussies he created a small market in Canada. Incl a hotel group.
This issue can mean that for purposes of double taxation that the higher (+ve)income value is taxed in the foreign country. No issue really since AUS provide s a credit for the foreign tax paid and final tax is in Australia based on the lesser sum.
The key issue is ensuring the foreign income matters are handled correctly. A normal rental schedule should NOT be used. Net rent should be reported as foreign income. Net losses on foreign income may need tax advice and a specific strategy.
Most of the larger QS firms have oseas colleagues who can provide the raw data to enable a schedule to be prepared compliant with Tax Agent Services Act. Some can use the owner info. I have a guy I went to school with who owns a QS practice in Canada who has assisted and sent a few clients my way. When he realised he could offer tax deductions to aussies he created a small market in Canada. Incl a hotel group.
When we get this question (one I probably hear at least once a month!) I like to refer to our governing body, the Australian Institute of Quantity Surveyors. They can be found at www.aiqs.com.au and are contactable on 02 9262 1822. They might not necessarily be able to answer the tax questions but they should be able to point you in the right direction of an appropriate QS.
