Ep.126 | Q & A-ccounting with Frank Azzopardi—Tax Deduction, Capital Gains Tax, Land Tax and Aussie Expats
Summary: Alright folks! It’s Q & “Accounting” time! Yep, on the couch today we’re talking all things tax! Here to help us wade through the grey area is Frank Azzopardi from our friends (and accountants) at <a href="http://ykpartners.com.au/services/">YK Partners</a>. If the name sounds familiar, it’s because Frank joined us back at <a href="http://thepropertycouch.com.au/ep-48-trust-capital-gains-tax-frank-azzopardi/">Episode 48</a>!<br> So, we’ve received a couch-load of questions about tax lately, and quite the few of you have these questions because you’ve “temporarily departed” overseas—you’re Aussie Expats working in another country, but investing in properties back here. And as you know, this can be quite the pickle for tax purposes!<br> (The rest of you simply want to know what you can and can’t claim. Fair enough.)<br> Trying not to number-crunch the neurotransmitters in your brain, here are what B1 & B2 + Frank discuss:<br> <br> * Is there a tax-free threshold when you live overseas?<br> * What is a Double Tax Agreement and what does it mean for you?<br> * How does foreign tax credit work?<br> * How do you offset tax loses?<br> * Tax Talking, What’s the difference between <a href="http://thepropertycouch.com.au/ep63-qa-ip-or-ppor-next-step-portfolio/">a PPOR and an IP</a>?<br> * Can you claim tax on <a href="http://thepropertycouch.com.au/ep97-qa-mechanics-of-lmi-foreclosed-property/" target="_blank" rel="noopener">Lenders Mortgage Insurance</a> (LMI)?<br> * What really constitutes “Repair” or “Capital Improvement”?<br> * Can you <a href="http://thepropertycouch.com.au/episode-021-the-negative-gearing-debate-in-australia/" target="_blank" rel="noopener">negatively gear</a> a property as an expat?<br> * What is the “6 Year Rule” of <a href="http://thepropertycouch.com.au/ep-25-lvr-cgt-smsf-property-cross-collaterisation/">Capital Gains Tax</a>?<br> * Can you avoid Capital Gains Tax?<br> * What’s the risk of loan in two people’s names (<a href="http://thepropertycouch.com.au/ep-046-qa-joint-ventures/">joint ventures</a>)?<br> * What’s the tax cut for your kids when they inherit your property?<br> <br> <br> Some of the helpful resources mentioned today are:<br> <br> * Income Tax Rates – <a href="https://www.ato.gov.au/rates/individual-income-tax-rates/">Find out more here</a><br> * What are Tax Treaties or Double Tax Agreements (DTA)? – <a href="https://www.ato.gov.au/General/International-tax-agreements/In-detail/What-are-tax-treaties-/" target="_blank" rel="noopener">Find out more here</a><br> * LocationScore Research Tool – <a href="https://www.locationscore.com.au/">Explore it here</a><br> * Episode 1 of Season 2 with RealEstate.com.au – <a href="http://www.realestate.com.au/advice/investing-in-property-can-help-you-retire-comfortably/?utm_source=database&utm_medium=email&utm_campaign=TPCdatabase">Watch here</a><br> <br> <br> And… The questions discussed are:<br> <br> From Andrea<br> “First of all I am loving the podcasts. I listen to them over and over. Secondly, as an Australian expat, living overseas long term but preferring to invest my money back home in Australia, are you able to do a podcast directed at Aussie expats wanting to invest back home but are not sure how to go about it? If you could talk about it or bring someone in? If you could talk about things Aussie expats need to be aware of ie—the different rules that apply regarding capital gains; tax depreciation; tax credits; services expats can employ to assist with the fact we can’t make a trip every week to attend viewings and sign papers. Having bought 4 places in the last few years, I have not completed my PIPA education yet—I am nervous about giving too much advice. Thanks and keep up the good work. I’ll be ready to buy again soon so will likely be in touch for assistance in this.”<br> <br> From Salim:<br> “Hi Guys.
