Can I use family trust buy property then rent back for NG, and how about pay off loan

you're almost there. now go see an accountant rather than randoms on the net.

find one who is familiar with oz tax and your language.

Hi Ed,
I will find an accountant eventually, but don't you think it's quite nice to post some ideas here and if you know nothing,how can you know an accountant is good or not?
Lots people can read and they can give you excellent advice and some other people also get help from these answers.
If my poor English make you upset, I feel sorry for that:confused:

You're not getting dividends, unless you're operating the business in a company owned by the trust. You're getting distributions of business profit.

You'll note the ATO example was of renting a property at commercial rates to the son, with the property owned by a trust controlled by the parents.

Can you find an ATO example where the property is rented to the actually controller of the trust (i.e. in that example the parents)?


Hi Alexlee,Sorry for using the wrong word "Dividends", yes, you got distributions from Trust every year.

This is the case I think: Janmor Nominees Pty Ltd 87 ATC 4813.
Refer ATO:
http://law.ato.gov.au/atolaw/view.h...001&recStart=21&recnum=22&tot=23&pn=ALL:::ALL

This is a Unit Trust because they want carry loss out the Trust to negative gear the personal income.
However, I have a business generate in the trust so I don't need carry loss out.


Generally not the best idea to have the property and business under the same trust.

Hi Bene, I do heard no good for put business with property under same trust. The business is always have a risk.
But then you have to make another Trust....a bit boring and costy....
Like all accountant advise you use corprate trustee then you have register a company, then in NSW not a good idea for Company Trustee be beneficiary so maybe you need another company as beneficiary.


Still trying to understand your logic here Poweregg.

You want the trust to own your PPOR so the trust can receive a tax deduction for the shortfall in holding costs. This deduction may only be offset against other trust income. In order to acheive this, you (or the trust) will be liable for the following:

- CGT on sale of property
- Stamp duty on transfer
- Land tax (possibly)
- FBT (possibly)
- Rent at commercial rates in after tax dollars

If over 5 years the property loses 15k pa and you are on the top marginal rate, you will save 37k in tax.

If the property costs 500k and appreciates by 5% pa and you sell after 5 years you will pay 34k in tax.

...and then there's stamp duty, potential Land Tax and FBT, plus possible scrutiny from the ATO.

What's the point??

Hi Bene313,

I don't want trust own my PPOR(and don't think trust can), I have a PPOR and don't plan to rent out.
Just for some reason I have to buy & live at another property. For sure because I have one PPOR the new one I am going to buy can't be my PPOR even I don't rent.
This is the reason I consider put it into trust to offset some income.
 
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