I have a family trust, Can I use it buy property and rent back to myself for Negative Gear, And how about I pay off the mortgage
Hi guys,
Just get a bit confused under following condition:
I want use family trust buy a property to live in, so I can rent from the family trust and the family trust get negative gearing.
(I have had a PPOR-principal place of residence but too far from where I living.)
Here is my questions:
1, Current my parents live in my PPOR for free, If I rent outside a long time like 10 year, will the ATO still treat my property as PPOR?
Or they will consider it's a investment(even no income!) and I have to pay CGT when I want sell?
2,Like I pay rent to my trust(company trustee) to get negative gearing, If one day the trust pay off the mortgage, so no Negative gear anymore, Can the Trust said to ATO "The home is not rent any more, it just provide free accomodation for xxx?"
Is this possible? or Fringe Tax Benefit will apply?
Thanks a lot
Hi guys,
Just get a bit confused under following condition:
I want use family trust buy a property to live in, so I can rent from the family trust and the family trust get negative gearing.
(I have had a PPOR-principal place of residence but too far from where I living.)
Here is my questions:
1, Current my parents live in my PPOR for free, If I rent outside a long time like 10 year, will the ATO still treat my property as PPOR?
Or they will consider it's a investment(even no income!) and I have to pay CGT when I want sell?
2,Like I pay rent to my trust(company trustee) to get negative gearing, If one day the trust pay off the mortgage, so no Negative gear anymore, Can the Trust said to ATO "The home is not rent any more, it just provide free accomodation for xxx?"
Is this possible? or Fringe Tax Benefit will apply?
Thanks a lot