Forum Replies Created
Crj – maybe a bit rough, don't you think? I'm asking a legitimate question, which is my understanding of what these types of forums are for.
I've read quite a bit but hard to get any further when I can't figure out what i'm looking for.Terry – thank you. Treating it as a person makes sense that way. I wasn't sure that a trust was treated the same way as a person, however – if the purpose of a trust is to 'hold' assets, it therefore needs to acquire them to be held, and didn't think it would make sense for them to be taxed in that aquisition if they'd already been taxed.. eh. ie, I can't 'give' something to be held in trust, I'd have to 'sell' it to the trust.
Anyhoo – in the end – I may lack the knowledge on this subject, although would never start the process without checking with a qualified accountant. I'm not a complete idiot.
Thanks Terry,
Have tried to do some more reading before coming back more confused than before..!Potentially a stupid question, but you say that the house will be a 'capital asset' – does this mean its taxed differently… as if it were a cash profit…? (I'm guessing – trying to understand what you mean)
Stripping it right back –
Trust A distributes 100k to Trust B during financial year,
Trust B uses whole of 100k to pay off mortgage, ending up with an asset, rather than a net profit at the end of financial.I guess what we're trying to figure out (related issues aside) is – what exactly does the trust pay tax on at the end of financial year? We understood it was profit, not assets? (Otherwise, how does the trust hold assets normally – a lot of double taxing?)
No profit = no tax? Or not so simple?
