Claimable Trust Setup Fees?

[mitch.mia]

Are the fees associated with setting up a trust an allowable tax deduction?

If so, how does this work? Does the person using their own money claim this in their respective tax return or does it get included in the trust's tax return?

Is this the same for HDT and discretionary?

Thanks in advance

BTW, Trust discussions are a hot topic on this forum - great all-night reading material :D

[Mry]

No.

If the trust ran a business, you could claim the costs over 5 years as a black hole expenditure claim (40-880 ITAA 1997). Passive IP ownership (http://ato.gov.au/individuals/content.asp?doc=/content/66031.htm&page=5&H5) does not constitute a business.

When buying a trust through an accountant, ask them to separate the cost of the trust from tax advice so that you are able to claim the tax advice as a straight 100% deduction (25-5 ITAA 1997).

[mitch.mia]

Ah, as I suspected.....

Thanks for your detailed response Mry.
Much appreciated.

[davea]

along the same lines of this, i imagine the answer is no though,

is the cost to set up a corporate trustee to a trustee fees claimable?

also, the annual ASIC fee, is this a valid tax deduction for the corporate trustee? if so what about the payment for the name ($220 for 3 years, so $70 per year apportioned?)

thanks

[alexlee]

along the same lines of this, i imagine the answer is no though,

is the cost to set up a corporate trustee to a trustee fees claimable?

also, the annual ASIC fee, is this a valid tax deduction for the corporate trustee? if so what about the payment for the name ($220 for 3 years, so $70 per year apportioned?)

thanks

The ASIC fee is deductible as an expense, but that's because that expense occurred AFTER the structure was setup, and is considered a cost of running the structure as opposed to creating it.
Alex