Couple of questions regarding trusts if someone could help me out pls…
1. Say for instance you had another trust as a benificiary, if you decide to allocate the profits to this trust, are the profits still taxed or can you use the profits (before tax dollars) to reinvest in another property etc?
2. Are you able to pay any bills out of your trust account on a weekly basis for example body corp. etc. for your investment property?
If anyone could help me out on this it'd be much appreciated.
thanks,
Trusts don't pay tax.
If the profit is not distributed the trustee is taxed on it at the top marginal rate. So if you distribute to another trust, that trust must then distribute it. Worst case, you could distribute it to a company and cap the tax at 30%.
You can pay any bills in any manner you can negotiate. Your trust should be only paying bills for that trust though.
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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