Let’s say if I have a property in a family trust and made a loss of $5000 in the current financial year and I understand that I cannot distribute the loss and if the property makes a profit of $8000 in the following year, will I be able to subtract the $5000 loss and just distribute the $3000 to beneficiaries?
I don’t think you can carry losses over in a trust.
Yes, the prior year loss is carried forward and can offset future years income
get some tax advice, you might have to make a family trust election to be able to carry forward the loss.
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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