Hi,
Does anyone know the answer to this one?
If I set up a company to be the trustee of my trust structure with the aim of holding some apartments which will be negatively geared is there anyway of deducting the losses from my personal income taxation?
Thanks
James
[suave2]Yes. You set up a hybrid discretionary trust. You issue units to yourself. You then borrow money from the bank to buy these units using the property owned by the trust as security. The trust will be giving you income, so they are income producing units. Therefore the interest on the loan you used to buy these units will be tax deductible.
All other expenses will need to be claimed by the trust.
please confirm this with your accountant.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I am certainly no expert whatsoever on trusts, but from my understanding, using a Hybrid Trust structure (often with a company as the trustee) to purchase your negatively geared investments will allow you to use that negative gearing against your personal income.
Cheers,
Jen
You must be logged in to reply to this topic. If you don't have an account, you can register here.
