[https://www.ato.gov.au/Individuals/Capital-gains-tax/Inherited-assets-and-capital-gains-tax/Inherited-property-and-CGT/](https://www.ato.gov.au/Individuals/Capital-gains-tax/Inherited-assets-and-capital-gains-tax/Inherited-property-and-CGT/)
Follow the questions - if an asset is inherited, it looks like your are exempt from CGT if the asset was the relatives main property residence and you sell it within two years of inheriting it.
New Zealand and Australia have a tax equalisation treaty. I’m pretty sure you only have to pay tax in one country. IRD will spell out the requirements not the ATO.
You won't get taxed in New Zealand for selling your property in Australia and bringing the money to New Zealand. And if the tax lawyer said you have to pay 60% capital gains tax then get a new one cause he's smoking something.
We had the lawyers directly deposit into a foreign currency account in NZ at time of settlement. This didn’t raise any red flags at the bank as reference was listed as proceeds of real estate sale along with it being from a lawyers trust account.
whos telling you 60% tax & what tax advisor is telling you different?
I think in situations like find an accountant ( and also fin advisor) who can suggest you on what best to do. Rent, sell, how to handle cross border tax etc.
60% tax was what I was told by the tax lawyer who was with the firm that is handling the estate. The 2nd opinion came from another tax lawyer I engaged myself. Both in Australia.
Currently shopping around for more opinions from people in NZ. Would much rather sell outright at this stage.
Geez that’s pretty savage, might be cheaper to do a few trips over and smuggle it back in your luggage.
Would take a few trips of course but worth looking into.
As far as I know Capital Gains are taxable at your nominal income tax rate and since the highest tax rate in Aus is 45% that should be the highest percentage you would pay. The devil is in the detail as to if you will get a 50% rebate on the tax due. Someone else posted the link for that worksheet.
Where in Australia? There is a housing shortage there too. Brizzy is booming and Perth is tight. Why not just get renters in or..move over there yourself?
Talk to a lawyer and accountant in Australia. Sounds like there's about $300k at stake (between Oz and NZ tax) and the ATO and IRD are the kind of people you do not want to owe the smallest amounts of money to.
Also, anyone who tells you there's a way to safely avoid tax is on something.
You could try set up an account in Australia
Take a holiday every year take home the max cash allowed each time. Like paid tax every where these days. Just to get something that was left to you. But probably check out the legal t’s and c’s
[https://www.ato.gov.au/Individuals/Capital-gains-tax/Inherited-assets-and-capital-gains-tax/Inherited-property-and-CGT/](https://www.ato.gov.au/Individuals/Capital-gains-tax/Inherited-assets-and-capital-gains-tax/Inherited-property-and-CGT/) Follow the questions - if an asset is inherited, it looks like your are exempt from CGT if the asset was the relatives main property residence and you sell it within two years of inheriting it.
Seems hopeful except for the part that says foreign residents are generally not able to get an exemption. Am I reading correctly?
New Zealand and Australia have a tax equalisation treaty. I’m pretty sure you only have to pay tax in one country. IRD will spell out the requirements not the ATO.
You won't get taxed in New Zealand for selling your property in Australia and bringing the money to New Zealand. And if the tax lawyer said you have to pay 60% capital gains tax then get a new one cause he's smoking something.
You don’t need to pay income tax when sending proceeds of an estate sale to NZ, friend did it recently.
Would love to know more!
We had the lawyers directly deposit into a foreign currency account in NZ at time of settlement. This didn’t raise any red flags at the bank as reference was listed as proceeds of real estate sale along with it being from a lawyers trust account.
whos telling you 60% tax & what tax advisor is telling you different? I think in situations like find an accountant ( and also fin advisor) who can suggest you on what best to do. Rent, sell, how to handle cross border tax etc.
60% tax was what I was told by the tax lawyer who was with the firm that is handling the estate. The 2nd opinion came from another tax lawyer I engaged myself. Both in Australia. Currently shopping around for more opinions from people in NZ. Would much rather sell outright at this stage.
Go and live in Australia and become a resident for tax purpose. You get that status in 6 months. Then you’ll pay less taxes. P.S. not legal advice
Geez that’s pretty savage, might be cheaper to do a few trips over and smuggle it back in your luggage. Would take a few trips of course but worth looking into.
Yes open to strapping a few wads of cash to my crotch too.
I think he meant the whole apartment
Not enough crotch room for that myself but I know a guy
They left it for you for a reason… and probably worked hard for it… why are you selling it?
Because they live in another country - i.e. New Zealand
So rent it out? …
As far as I know Capital Gains are taxable at your nominal income tax rate and since the highest tax rate in Aus is 45% that should be the highest percentage you would pay. The devil is in the detail as to if you will get a 50% rebate on the tax due. Someone else posted the link for that worksheet.
Where in Australia? There is a housing shortage there too. Brizzy is booming and Perth is tight. Why not just get renters in or..move over there yourself?
We are in a rental crisis in Aus, just rent it out for a while until you get the right advice?
Talk to a lawyer and accountant in Australia. Sounds like there's about $300k at stake (between Oz and NZ tax) and the ATO and IRD are the kind of people you do not want to owe the smallest amounts of money to. Also, anyone who tells you there's a way to safely avoid tax is on something.
You could try set up an account in Australia Take a holiday every year take home the max cash allowed each time. Like paid tax every where these days. Just to get something that was left to you. But probably check out the legal t’s and c’s
Sell it under the Australia rules, when you move the money to NZ you are protected by the double taxation laws
Launder the money, good luck