All Topics / Legal & Accounting / NZ Property Management Agreement

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  • Profile photo of Hux001Hux001
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    @hux001
    Join Date: 2003
    Post Count: 108

    Anyone got experience or knowledge whereby you have NZ property in trust but have an agreement whereby you legally manage the property from Aus and thereby claim the losses in the trust in your Aus tax return?

    It’s an NZ trust but Aus controlled. My NZ accountant tells me they do it for others in Aussies and it’s perfectly legal to do so.

    Profile photo of XeniaXenia
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    @xenia
    Join Date: 2002
    Post Count: 1,231

    I didn’t think you can “claim” losses inside a trust, that’s why they are not suited to negatively geared properties and are usually recomended for properties that make money!

    Losses are carried forward but cannot be claimed! A comment from an accountant would be great :)

    We have 5 shops in NZ owned by a NZ trust, it’s positively geared and we have a property manager who takes care of it. I’m not sure how the tax is worked out, I leave that up to my accountant :)

    Investment Property Management
    http://www.adprop.com.au

    Profile photo of Hux001Hux001
    Member
    @hux001
    Join Date: 2003
    Post Count: 108

    Thanks Dr X.

    My NZ accountant says he has setup about 5 Aus investors this way with a property management agreement whereby they can claim the losses against Aus income.

    The explicit purpose of the agreement is to preserve the capital of the trust, not tax avoidance.

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