Another question on trusts!!
It is possible to have a trust owning your PPOR and pay rent for its use. Similarly, can your trust rent a premises (for the use of the beneficiary and/or trustee, not sure of the wording here), in which it can claim against other income earned.
If so, is it again a proportion of what is business use or can it claim the full amount.
Ultimately, would like to claim rent that I am paying now as a legitimate expense if possible.
James
It’s this kind of thing that the ATO would be looking at Re TRUST’s Georgis..IMO
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
HI James,
## It is possible to have a trust owning your PPOR and pay rent for its use.##
Can you please make it clear? what are you tryin to say? Because once you buy PPOR under trust then why trust will pay rent for it?##Similarly, can your trust rent a premises (for the use of the beneficiary and/or trustee, not sure of the wording here), in which it can claim against other income earned.##
Yes your trust can rent a premises but you will be renting the premises for trust use.
Cheers
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PropertyGuRu
I want to be billionaire! [] yes you can rent your home from your own trust. There is actually a tax ruling abut doing this with unit trusts – where the ATO took a dim view. But to my knowledge there is no ruling on discretionary trusts. All rent must be at market value, and don’t forget the home will not be CGT free when you sell (if) and you will ahve to pay land tax.
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
Just reviving this from the dead…before I ultimately administer last rites….
Any information/experience regarding if it is possible to somehow claim current rental as ‘trust expense’ and therefore, tax deductible….
James
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