Hi all,
I am only just starting to learn about different types of trusts etc and wondering if I setup a family trust as I am self employed is it possible to use money that hasn't been distributed to beneficiaries to buy property and what would the tax implications be. Also what would the legal and tax implications be if I lived in a property owned by a family trust.
Any income earned in a trust and not distributed to beneficiaries is taxed at the top marginal rate ( around 45-50%). In short, its not worth it.
Living in a property owned by the family trust is fine. Just dont try and claim any deductions are try to say you pay rent on it – if you are – suggest speaking to an good accountant about the ATOs Anti Avoidance laws.
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