Thread: Arbitrage income from rental property
View Single Post
  #3 (permalink)  
Old 02-03-2006, 04:37 PM
jadet jadet is offline
Junior Member


Points: 1,816, Level: 26
Points: 1,816, Level: 26 Points: 1,816, Level: 26 Points: 1,816, Level: 26
Level up: 27%, 84 Points needed
Level up: 27% Level up: 27% Level up: 27%
Activity: 0%
Activity: 0% Activity: 0% Activity: 0%
Join Date: Nov 2005
Posts: 19
jadet is on a distinguished road
Default Arbitrage income from rental property
We are planning to do the same (but not quite so much rental income!). I believe that the US govt does not tax the first 80K of your international income. But it will probably tax the entire amount of US income, as it always has, unless you have some deductions. Another question is state taxes on the income. We live in Washington where there is no state income tax, so this one was not an issue for us.
We are planning on finding a good tax accountant in NZ when we arrive. I believe that there is some sort of tax treaty, so there is a chance that both govts won't tax the same money. You probably know already that NZ taxes the first penny you earn right? There are very few deductions there. I think earning income off your house is one- so that's why the 1 bedroom rental unit attached to the house is so popular there.

I expect if you have the rental agreement to show the bank in NZ they would be more accepting of it as genuine income.

How long to you plan to hold onto the US property?
Reply With Quote