Hi Anthony K,Really Thanks for the decent answers.Especially for the case:Janmor Nominees Pty Ltd 87 ATC 4813 which ATO LOST.They used a unit trust so can take the loss out to Negative their person income.My discretionary trust with a business to generate income, so it don't need transfer the loss out.One thing I forgot to explain is the reason I…[Read more]

also found 2 links: 1.Rent as market valuehttp://www.ato.gov.au/rba/content.asp?doc=/RBA/Content/83291.htmIf the property is rented at market price, the trust can claim all expense like intertest,land tax,council rates and I think if it's rented as 'Fully Furnished', the depreciation of the furniture also can be included to offset the Trust's i…[Read more]

Hi duckster, thanks for the reply and Link, much appreciated:)Hi luke86, thanks for the explain.The trust runs a business so it has an income stream, and much thanks for the idea about "'Fully Furnished'"