PropertyInvesting.com | Welman | Activity

Welman replied to the topic Asset depreciation on IP owned by Company Trust in the forum Legal & Accounting

Mon, 17 Mar 2014 10:02:57 +0000

Thanks, TerryW.

Taking further the above examples. In a hybrid Trust scenario where a person borrows money to buy Units in the Trust, and the Trust buys the property, the Trust earns $20,000 a year of rental income with expenses of $5000 and depreciation $10000. Therefore the net income of $5000 is distributed to unit holders/beneficiaries.

My…[Read more]

Welman replied to the topic Asset depreciation on IP owned by Company Trust in the forum Legal & Accounting

Tue, 11 Mar 2014 13:34:33 +0000

Thanks, crj.

crj wrote:

If your trust is a unit trust and you have borrowed money to buy the units even if that borrowing is secured by property owned by the trust …then you might be able to claim the losses eg borrow $400,000 to buy units in trust, trust buys property for $400,000.

It is interesting to know this scenario is possible.…[Read more]

Welman replied to the topic Asset depreciation on IP owned by Company Trust in the forum Legal & Accounting

Tue, 11 Mar 2014 01:36:55 +0000

Thanks for this insight, Sunnycoastinvestor.

Sunnycoastinvestor wrote:
if you have a trust, the only way you can distribute from that trust is if there is a taxable profit in the trust. If the trust has a loss, the loss is carried forward to a future year to be offset against any taxable income.

If I get a special kind of Trust (Chan and…[Read more]