My partner is not citizen, can we gear IP?18.

Discussion in 'Accounting & Tax' started by ropelearner, 5th Oct, 2017.

Join Australia's most dynamic and respected property investment community
  1. ropelearner

    ropelearner New Member

    Joined:
    29th Sep, 2017
    Posts:
    2
    Location:
    Sydney
    Hello all, I'm looking to buy my first IP -- a 2 bed unit in southwest Sydney. Planning to buy jointly with my partner. I am Australian born but she is temporary resident, likely to get PR around February 2018. My question: can we negatively gear if we buy as a couple, and does her not belong a citizen come into play? If there is a resource that covered this please refer me. Many thanks
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    20,352
    Location:
    Sydney or NSW or Australia
    Does she require FIRB approval to purchase an existing property?
     
    Terry_w likes this.
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

    Joined:
    9th Jun, 2006
    Posts:
    30,859
    Location:
    Australia wide
    Yes
     
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

    Joined:
    9th Jun, 2006
    Posts:
    30,859
    Location:
    Australia wide
    She probably does.
     
  5. Ross Forrester

    Ross Forrester Well-Known Member

    Joined:
    30th Oct, 2016
    Posts:
    1,807
    Location:
    Perth, Western Australia
    Non-citizens can still negatively gear their Australian property investments against their Australian income.
     
    Tony Fleming and ropelearner like this.
  6. ropelearner

    ropelearner New Member

    Joined:
    29th Sep, 2017
    Posts:
    2
    Location:
    Sydney
    Thanks, Ross
     
    Ross Forrester likes this.
  7. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    15,131
    Location:
    Sydney
    Non citizens may neg gear if they earn Australian source income but the property can be exposed to sale if you both depart Australia. Check the FIRB rules before buying and I would suggest legal advice on that issue too.

    More importantly there may be a stamp duty and/or a land tax surcharge issue depending where the property is but the person may (or may not) meet a test of residency. Again - legal advice.
     
    ropelearner likes this.