Question : The trust purchases a property but rental income is insufficient to cover expenses (oops!) so repayments are supplemented from my personal (after tax) income. At end of tax year, do I see any of that money again? Can I claim anything on my tax return?
Thanks!
hi newbie04
asking this question tells me you are a not using an accountant and b you are not using a broker. and c you have not setup a structure for your investments.
all of the above need to happen and then yes you will see a portion of you expenditure and the amount is dependant on the above.
I don’t give financial advice nor do I broker for external clients and I’m not an accountant but thats what is required.
the cost will be less then the potential losses without setting it up correctly from the starthere to help
Hello Newb,
I am no accountant either and no financial advisor.
I think you will be able to show your contribution as a loan to the trust. This will then be offset against any capital gains when you eventually sell.
Or am I thinking about a company structure???
HELP – somebody!Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
You would either have to gift money to the trust or loan money to the trust.
Whichever way you chose could have asset protection implications. eg. if you lend money, then go bankrupt, the money loaned is still your asset. If your money is gifted, then it may be safe – depending on when you gifted it etc.
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
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