We have a few investment properties in a family trust. Overall the trust carries a loss and up to now we have transferred money into the trust from our company. The transaction is shown as income administration to the trust and an administration expense to the company. However we have now been advised that the ato properly won’t accept this. Losses can be carried forward a 100 years but we would like to benefit today from depreciation and tax savings. Can anyone help?
Hello Amz
Since your company appears to be making money, you could possibly transfer shares in the company to the trust and then distribute profits into the trust with the income offsetting the other negative gearing. But this may be a bit more complex as the company may be distributing franked dividends – so best to talk to an accountant.
Terryw
Discover Home Loans
North Sydney
[email protected]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
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