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Reply: 2.1.1.1.1.1.3.1 From: Dale Gatherum-Goss Hi Kim I'm afraid that I didn't quite understand your post so I'll try to guess at what you mean. A trust that has income from a franked dividend still has to declare that income in it's tax return. The franking credit attached to the...

Reply: 2.1.1.1.1.1.2.2.1.1 From: Dale Gatherum-Goss HI Terry No problems, I'm sorry if I bit your head off. I'm tired and cranky today . . . Keep asking questions, but keep an open mind. Dale

Reply: 2.1.1.1.1.1.2.2 From: Dale Gatherum-Goss Hi Terry! Please understand that I NEVER EVER break the law. It is not worth it to me as doing so would have me disbarred from being a CPA and a tax agent and this would destroy my principle income . . . However, I have successfully used the...

Reply: 3.1.1.1 From: Dale Gatherum-Goss Hi Gordon! This is an interesting issue. The Government have a dilemma on their hands. On the one hand, they wish to show the common man in the street that they are doing something to stop trusts being "abused" by the wealthy. On the other hand, as...

Reply: 2.1.1.2.1.1.1.2.1 From: Dale Gatherum-Goss Hi! Yes, a director works as well as an employee. In fact, most of the tax office definitions show them in the same light. I'm glad that you have found this discussion interesting and helpful. Just be prepared that your accountant may not...

Reply: 2.1.1.2.1.1.1.1.1.1.1 From: Dale Gatherum-Goss Hi Yes, absolutely!! This would worry me as investment assets are then at risk and O don't like that at all. Dale

Reply: 2.1.1.1.1.1.1.1.1 From: Dale Gatherum-Goss Hi Robert! You wrote:"At no stage should you be hit with that problem cause it's at arms length and above market values." The tax office do not consider this as being at arm's length because you are would be in a position to influence the...

Reply: 2.1.1.2.1.1.1.1.1 From: Dale Gatherum-Goss Hi Duncan! Yes, an annual review of your investments is a tax deduction. The cost of having both structures is cumbersome and probably not worth the hassles involved. I would merely take the partnership and make it into a company or trust...

Reply: 2.1.1.2.1.1.1 From: Dale Gatherum-Goss Hi Duncan! No, a trust and company can do much the same in this regard. However, a partnership does not allow the same flexibility because "mum and dad" are not employees of the partnership. Dale

Reply: 3.1 From: Dale Gatherum-Goss Hi Simon! I've commented on Robert's thoughts already. As always, there is always more than way to skin a cat. We can not distribute the profit and allow the trustee to pay tax at 48.5% if we want. Alternatively, as Sim pointed out, we can make book...

Reply: 2.1.1.2.1 From: Dale Gatherum-Goss Hi Duncan! I wondered whether anyone would bite . . . Yes, the trust (as can a company) can buy some things for the individuals such as: movie tickets alcohol chocolates sex toys (yes, I did say that!!) etc etc etc Basically, the trust can do this...

Reply: 2.1.1.1.1.1.1 From: Dale Gatherum-Goss Hi Robert! Great stuff!!!! The only issue that I have is that you would pay CGT on the market value of the house regardless of the contract price because the tax laws says that you are not dealing with the trust "at arms length". This helps...

Reply: 2.1.1.1.1 From: Dale Gatherum-Goss Hi Owen If the trust owns an asset that is negatively geared, then the trust must either have a LOC in place to cover the shortfall; or, have a cashed up bank account to cover the shortfall; or, must borrow money from the people who control the...

Reply: 2.1.1 From: Dale Gatherum-Goss Hi Sim! I couldn't open that file . . . maybe I'm doing something wrong. In a nutshell, the benefits of a trust are many fold: Asset protection. If a trust is established properly, then it is virtually impossible for the assets of the trust to be...

Reply: 1 From: Dale Gatherum-Goss Hi No, you personally cannot get a tax advantage from a negatively geared property held within a trust. However, as so often happens, a few years down the track the property is no longer negatively geared and if it is held in a high income earner's name, we...