I think I read something in the dim and distant past, but I can't find it - can anyone help?
Since the exchange rates are so bad, I'm considering renting out my house and selling later, or selling and then keeping the funds in the bank for a couple of months.
OK. What is the Australian position on capital gains tax concerning this?
I don't believe I would be taxed on it if I took it over with me (at about the same time), but what about if I change it a few months down the line. Will it suddenly be considered capital gains?
Anybody know?
Thanks,
James.
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James, Jo, Elliot(14), Jake(10), Lewis(9)
Arriving in Melbourne on the 20th August, 2008 - watch out!
I'd go for selling the house - the UK market looks bad at the moment so perhaps best to get it on now.
I'm really not sure about the CGT though - as it would be proceeds of your primary residense it should not be taxed.But one you let it out it will be an income bearing asset and may attract CGT??
We sold an investment property in the UK earlier this year.Funds still sat in the UK awaiting a hopeful increase in the exchange rates.
As we have been residents here for over 5 years - no CGT to pay in the UK.Any gain on the property since our arrival is to be paid to the Oz taxman.
__________________ Quality furnished rental accommodation in Adelaide.
Thanks Tyke, that sounds reasonable. I'm renting to a friend who will only be charged enough to cover the costs, so no profit at all. Will I still be taxed on that money?
I realise you're not an expert but you do have some experience in the matter obviously.
Cheers,
James.
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James, Jo, Elliot(14), Jake(10), Lewis(9)
Arriving in Melbourne on the 20th August, 2008 - watch out!
I would be very careful when deciding on this! We settled on our UK house in November 2007, the exchange rate was about 2.37, we did not really know about exchanging money etc, and thought it safer to leave in the UK until needed in Oz. Web looked into changing some of it in Dec, when the exchange rate was 2.32, but stupidly (we realise now!) we listened to people who tipped it to go up at the end of January, as we all now know that was a big mistake.
We now have to exchange the bulk of our money to settle on land here, and whilst we have (still) been waiting for it to go up it has gone down further, we have 'lost' about $55,000.
I don't think it will go up again, just keep falling!!
__________________ Visa granted 2/11, got here 1/2/08 GOING HOME 30/6 Dave (electrician) Lisa, Holly 5, Samuel 3
"Ditto". We did the same as well and I think there are many more out there in the exact same boat!
I try not to torture myself or 'beat myself up' over it but it is damn annoying. It caught a lot of people out including the 'FX specialists' who make their living out of it!
I suppose we were stubborn in believing that we wouldn't change at a low rate with it having been 2.37 in November. We just didn't think it would keep slipping and slipping the way it has done.
Have a look at this informative thread from Richard in HiFx. It gives you an up-to date view on the current situation if nothing else.
In the meantime if anyone out there knows of someone who has either a Time Machine or a Crystal Ball, I'd be very interested. Or.....even a Delorean like the one from 'Back To The Future' would be useful.
Here's hoping......."wait, was that a flying pig I just saw out of my window!? :-P
Thanks Tyke, that sounds reasonable. I'm renting to a friend who will only be charged enough to cover the costs, so no profit at all. Will I still be taxed on that money?
I realise you're not an expert but you do have some experience in the matter obviously.
Cheers,
James.
If you are not making a profit then you won't pay tax.
As to whether or not you have to declare this is another matter.
I'd just keep some paper record.
__________________ Quality furnished rental accommodation in Adelaide.
If you are not making a profit then you won't pay tax.
As to whether or not you have to declare this is another matter.
I'd just keep some paper record.
You have to declare it and you should declare it as it will potentially reduce your Austrlaian tax, if you are paying mortgage interest on the UK property.
