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.
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.auThanks 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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