All Topics / Legal & Accounting / Trust question

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  • Profile photo of McDougMcDoug
    Member
    @mcdoug
    Join Date: 2007
    Post Count: 2
    December 16, 2007 - 12:14 pm

    Hi all,
           Last year I went into partnership with a friend to buy a commercial property. I put it into my family trust and was wondering if I bought a car as trustee of the trust if the expenses would be deductible.  I'm the individual trustee and regularly attend to the property for maintenance etc.

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856
    December 17, 2007 - 1:34 am

    It is easier to justify mileage rate on a logbook basis & get reimbursed by the trust than trying to separate out your private usage of the vehicle unless your business usage is quite high.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    December 17, 2007 - 6:23 am

    Tax deductibility doesn't depend on the owner of the asset, but whether the expense relates to business or investment.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of McDougMcDoug
    Member
    @mcdoug
    Join Date: 2007
    Post Count: 2
    December 18, 2007 - 4:30 am

    Thanks for the replies Terryw and Scott.  The reason I wanted it owned by the trust was so it could claim the gst on the car . So as long as its used for trust business it should be ok?

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