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Claiming taxes paid by trust as a non-resident

Discussion in 'Accounting & Tax' started by Starbright, 15th Jul, 2015.

  1. Starbright

    Starbright Active Member

    Joined:
    18th Jun, 2015
    Posts:
    40
    Location:
    Sydney
    Hi there,

    Does anyone know if I become a non-resident for tax purposes, can I still claim a tax refund for negative gearing? If I pay tax on the income of properties in my trust, can I claim the mortgage interest in my individual income tax return, or do the losses accumulate for when I come back to Australia and offset income?

    thanks
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    9,014
    Location:
    Sydney
    I think you are confused on a few levels here. You cannot claim a tax refund. You claim expenses and you may get back a tax refund if your tax paid is more than the tax you are supposed to pay.

    Will you be paying tax in Australian if you are non resident? Probably not, so nothing to get back.

    your trust? You might be a beneficiary of a trust but it is not yours. Who is the trustee? Will the trustee be a tax resident? Tax issues and corporations act issues.

    A beneficairy would only pay tax on distributions from a trust, normally.If a trust owns property you cannot claim the interest on expenses associated with this property. If a trust has losses the losses can be carried forward if certain requirements are met. Otherwise they might be lost.