Just wondering if anybody who still has a UK property that is rented in UK, is looking to claim negative gearing on their Australian tax return. We have been told it is possible to do this.
We have left a property and recently had a change of tenant and had to reduce the rent so we are currently about $300 dollars down a month after we have paid the agents fees and mortgage. In addition we have had to have electrical and gas checks and so it goes on but we are not in a position to sell as we are tied into a mortgage for a further 5 years and we are hoping eventually we may make a profit on this property so we are looking at it as an investment.
One worry is that is we do claim tax relief over here what happens when we eventually do sell it? Do we have to pay capital gains tax over here?