hi,
I posted this question elsewhere on the board but didnt get a great response so i thought i would try again.
Is there any problem with renting a house owned by a trust that you are the beneficiary of? Obviously there would be many benefits to this so that is why i am wondering. If this has been discussed elsewhere on the board please add a link so that i may get some information about it as i would love to know as much as i can.
I have searched but not found any information on this.Any help appreciated,
Thanks,
Waz11
I would imagine that this would not constitute an `arms length transaction` and that the ATO would look extremely closly at it.
Waz11,
This was discussed here somewhere not so long ago.
From memory, the main points were that the house owned by the trust would not be capital gains tax exempt and you cannot negatively gear the house you’re living in (ie. by using a unit or hybrid trust). Otherwise I don’t think there’s much problem with it.
But check with an accountant or lawyer.
GP
Waz,
Yes you can do it. I do it.
There’s some good discussions both here and at Somersoft on the topic if you do a search.
It’s like any other IP….you can even furnish it
Cheers,
Aceyducey
In theory, there is no difference between theory and practice. But, in practice, there is.– Jan L.A. van de Snepscheut
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