Buying Commercial IP with Trust? - GST implication?

[manny]

Folks,

had a quick question re: buying a commercial IP using a trust... could the trust claim back the GST? assuming you register your trust for GST? Would the Trust need to do BAS statements quarterly? Also, would you still get the 50% CGT subsidy if you sell the commercial IP in a few years time just as you would with residential IPs?

Would a discretionary trust be recommended to buy a positive geared commercial IP?

Cheers,

MannyB.

[Aceyducey]

Manny,

Whether you are buying commercial IP or using the trust otherwise, trusts are treated as legal entities and can register for GST the same as companies - in fact they must if over the legal income threshold.

BAS statements can be done quarterly if you prefer that approach.

Subsidies & discretionary trusts - an expert will have to reply to this bit :)

Cheers,

Aceyducey

[Jas]

Originally posted by manny

Also, would you still get the 50% CGT subsidy if you sell the commercial IP in a few years time just as you would with residential IPs?


Hey Manny

the reason you get the 50% is becuase the gains can't be held within the trust, but rather are passed onto the beneficiaries.

So no matter whether its a commerical place or residenatal the same effect applies.

Jas

[manny]

Hi Jas/AsyDucey,

thanx for your replies...

Cheers,

MannyB.