Our accountant advised us to set up a trust for all our income (2 contracts – my partner and I, and 4 rental properties plus small misc. contract income) to allow us to make my partner the lower income earner. We are both contractors, but my partner would not pass the 80/20 rule for personal services on his own- he contracts mainly to one company at a time. I have numerous income streams.
My accountant advised us to set up a trust (which has been done) and they said the the trust is its own entity as far as personal services rulings are concerned, therefore so long as less than 80% of the total income of the trust is from the one source then it’s OK to distribute the income at fin. yr end to myself.
Is this right? I don’t really understand it all..
You must be logged in to reply to this topic. If you don't have an account, you can register here.
