Tax implications for overseas seller??

Hi all,

A friend of the family who lives in Canada is selling a property here in Sydney. She claims she's a Australian resident for tax purposes, but isn't sure.

She used to live here, but has not been back to Australia in over 10 years and is not a citizen. At one point in the past she had Perm Residency status, but does not have a valid visa anymore.

For purposes of selling a unit here (est price $650K), what residency status does she have?

I've already told her she needs to seek her own advice, but thought I'd ask here for my own curiousity.

Any assistance is greatly appreciated.

Q

 

Likely to be a non resident

 

I will go further. I will say "she is NOT a Australian tax resident".. Sale of this property may mean if it had been a home once it will lose that exemption on sale and may not get any CGT discount. She may be able to get advice on a valuation method that may limit just some CGT

Foreign resident withholding applies to the sale so determining actual CGT may be cheaper than the withholding tax. We provide probably 2-3 callers from overeases a month with guidance on the tax issues from prior to sale (estimates), valuation benefits (or not) through to final tax after sale. We are now seeing many that are deceased estate beneficiaries and taht can add to complexity

And the same property in canadian dollar terms may also be subject to CAN tax with credit allowed for AU final tax.