Hi everyone,
I’ve recently discussed setting up a trust with my accountant and he made a point that you cannot distribute losses from a trust to trustees. While we are all looking for positively geared properties (or other investments), it might be worthwhile to note this fact for those people who do have negatively geared property and are thinking of setting up a trust. Any other comments appreciated.
Cheers,
David [
]Gday David
There is in fact a way to set up so that losses from investment properties (or shares) can be offset against the beneficiaries income. I say beneficiaries as I am guessing that is what you meant rather that trustees?
It involves the use of a unit trust set up for the particular property, borrowing money to buy units in the trust, receiving income from the trust via rent etc.
I first got this info from http://www.chrisbatten.com.au.Regards
Clive Stone
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