Australian Property Tax information - any help?

- the Australian Tax Office site.

I'm not sure exactly which taxes you're referring to, but land taxes are levied by the state governments and while there's been a fuss about foreigners buying property, I'm unaware of any rules specifically relating to foreign home ownership (this might well be the case). If the house is not the primary residence, it becomes an asset for capital gains purposes, and any profits on sale are taxed at her regular tax rate.

How she is taxed is dependent upon her residency status. Non-residents pay tax on every dollar they earn, residents start paying at $6000 p.a (the technical figure after offsets is higher). Paul Hogan had major tax concerns when he allegedly told the ATO and the IRS that his income was being taxed in the other country. She will only pay more tax on any income earned in Australia (investments, rent of the house) if she is deemed a non-resident.

Another link that might help...

Thanks, I will check that out.

If she is a dual citizen, living in the US, she would not be a resident of Australia, correct?

She does rent the house out, but has a mortgage on it (although I doubt that makes a difference).

US Resident to be? wrote:

Thanks, I will check that out.

If she is a dual citizen, living in the US, she would not be a resident of Australia, correct?

She does rent the house out, but has a mortgage on it (although I doubt that makes a difference).

There's a little more to what I'm about to say, but if she doesn't wish to pay Australian taxes she will declare herself a non-resident, lodge her final Australian tax return and have ALL income subject to US taxation rules, including the income from the house.

Another question, does she have any other Australian sourced income, such as that from investments (Mutual funds, stock, CD's, bonds etc(I've use the US terms there))?

The fact that she is still paying off a mortgage means the interest she is paying will be offset against rent earned. If the (interest + costs) > rent, you have a negative gearing situation from which the loss can be claimed against other Australian income. I am not sure if the US allows negative gearing (offsetting borrowing costs against income & allowing a tax deduction) but the one thing that will go up for certain are her Accountancy/tax agent fees.

not related to OP's question: Why would someone be a 'dual-citizen' of two countrys? What is the point?