All Topics / Legal & Accounting / Absorb losess from a trust?

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  • Profile photo of st81hp79st81hp79
    Member
    @st81hp79
    Join Date: 2010
    Post Count: 35

    Hi,

    I am a bit confused my question is.. 
    Can Trust (A) hold a retail business that has an income and absorb losses from Trust (B) which holds negative geared property?

    I have seen a few accountants lately and all of them are giving different answers to my question.
    Some accountants had said yes the income from one trust can flow to another trust with a loss. Other accountants I've seen have said no it's not possible.

    I've read the page at the following link, and presume that it's possible?
    http://www.ato.gov.au/super/content.aspx?doc=/content/71255.htm&page=37&H37

    I appreciate any advice on this, and please correct me if I am wrong.

    Cheers

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Yes it can. But there are complex rules involved.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

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