Divert other income into the trust to offset the loss – not always possible 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
How would you know the trust is good for your needs. You need to be focused in order to get the real one. Now days some trustee have different cases concerning on how you understand them.
Hi Terry,
Can an overseas resident be beneficiary of a discritionary trust in Australia? Obviously they have to pay tax in their home country, but will they be required to pay tax in Australia?
cheers.
viv
yes. They will have to pay tax here and this will depend on their status, type of income and if there is a double taxation agreement with their country of tax residence.
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
eg. Don't know if this is still current:
Tax on dividend paid to a non-resident exempt from withholding tax as long as it is fully franked. Make yourself a non-resident and get dividend tax free. May still have to pay tax in your country of residence, but some countries foreign dividend income is tax free. Eg. Hong Kong.
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, also you mentioned that it is not always possible to transfer the profit between trust, why is it?
If i have trust no.1 that's holding a negative geared property, effectively making a loss and trust no.2 buying, renovate and selling for profit, can I make trust no.1 beneficiary of trust no.2 then distribute the profit to trust no.1 to offset the loss?If the two trust have the same company trustee, will that be possible?
thanks a lot!
Danviv
Yes it is possible for one trust to distribute to the other trust, subject to the deed. Who the Trustee is shouldn't matter.
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
Hi,
Please help. I moved my family to Australia 2 years ago. We have a Trust in NZ and would like to transfer our Australian property into the NZ Trust. Can we do this?
I would assume in doing so the Trust would have to pay stamp duty [and tax if we rent it] to the ATO.
I am an Australian resident and my husband is an Australian citizen. We plan on returning to NZ in 5 years. We formed the Trust, prior to moving here, to protect our assets in NZ and didn't see any point in dissolving the Trust due to our plans on returning to NZ.You probably could transfer the property, but it will be subject to stamp duty and CGT (if investment). You will need specialist advice as you are covering 2 countries with different laws and difference tax treatments.
But, why not leave it as is? If you will buy more why not look at setting up a new trust and spreading the risk a bit.
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 Terryw
I will call an Australian lawyer tomorrow.
NZ properties are selling 30-40K less than GVs and falling. Maybe it's time to cut our losses and be rid of the stress of paying a property manager to look after [poorly] our rental poorly.
We are looking at the option of selling our NZ assets to pay off our mortgage here quickly.
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