For a positively geared property (using substantial depreciation allowances), can a Trust apply for a section 221D (ie. reduce tax during year) to assist with loan repayments?
I’m no accountant, but I would say that if the trust is making regular tax payments (ie: weekly PAYG) then YES.
HOWEVER>>>>
I doubt that your trust is making regular tax payments (PAYG) to the tax office if it only owns property (AND I hope you haven’t combined an assett with other income producing activities for assett protection reasons!). So you couldn’t vary something that you weren’t paying anyway……so NO!!Different story if it is a Hybrid Trust. But in this case you would be adjusting tax for the loan in your personal name. So YES!
Clear as mud?
Live, Learn and GrowLifexperience
You can’t negative gear in a trust. Losses cannot be distributed, so it probably wouldn’t work.
If you had a hybrid, it would be a different story and the unit holder could go for the tax reduction.
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
thanks terry,
my own ramblings sometimes don’t even make sense to me.Clear and concise, an art you seem to have mastered!!!
Live, Learn and GrowLifexperience
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