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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 have to buy the property is because the business required so.(like need you onsite 24 hours)
So today I talked to my accountant he said I even don't need pay rent and can deduct all expense(interest,land tax,council rates…) because this property is required by run the business(I just feel a bit crazy but I will do further research…)Hi Terryw,
Much thanks for the info "if you are not earning an income from it then it can remain as your main residence indefinitely."
Base on these issue, as I already have PPOR,the only benefit for buying the new property under my name is save the stamp duty.
(I have to pay CGT when sell anyway because I already have one PPOR)
So put under the trust, and live there because the business required so….
(Hope ATO can accept my explaination)However, Like company provide free accomodation, it may trigger Fringe Benefit Tax….this is my new anxious question….
(I will ask accountant and update if any got news)also found 2 links:
1.Rent as market value
http://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 income.
(But the expense or loss can't take out of the trust to NG personal income.)2. If the rent is lower than market rate, all you can offset is what you got.
http://www.ato.gov.au/individuals/content.asp?doc=/content/00191817.htm&page=7Ato example:
Renting to a family memberATO Web wrote:Mr and Mrs Hitchman were charging their previous Queensland tenants the normal commercial rate of rent – $180 per week. They allowed their son, Tim, to live in the property at a nominal rent of $40 per week. Tim lived in the property for four weeks. When he moved out, the Hitchmans advertised for tenants.Although Tim was paying rent to the Hitchmans, the arrangement was not based on normal commercial rates. As a result, the Hitchmans cannot claim a deduction for the total rental property expenses for the period Tim was living in the property. Generally, a deduction can be claimed for rental property expenses up to the amount of rental income received from this type of non-commercial arrangement.
Assuming that during the four weeks of Tim’s residence the Hitchmans incurred rental expenses of more than $160, these deductions would be limited to $160 in total – that is, $40 x 4 weeks.
If Tim had been living in the house rent free, the Hitchmans would not have been able to claim any deductions for the time he was living in the property.
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'"
