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

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

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  1. ropelearner

    ropelearner New Member

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    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

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    Does she require FIRB approval to purchase an existing property?
     
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  3. Terry_w

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

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    Yes
     
  4. Terry_w

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

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    She probably does.
     
  5. Ross Forrester

    Ross Forrester Well-Known Member

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    Non-citizens can still negatively gear their Australian property investments against their Australian income.
     
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  6. ropelearner

    ropelearner New Member

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    Thanks, Ross
     
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  7. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    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.
     
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