Hi everyone,
I am looking at setting up a discretionary trust where myself and my partner are the trustees and primary beneficiaries. We are looking at purchasing 2 units in the next few weeks in QLD.
I have a few questions that I would be grateful for if you could answer.
1) If both properties are purchased under a single trust name, is land tax accumulative for properties?
2) Can property expenses (including depreciation) be used to offset income tax? Say if I earn $100,000 and the property runs at a loss of $10,000. Is my total taxable income $90,000?
3) As we are the beneficiary, does the income we receive from the trust increase our total personal tax income? Say if I earn $100,000 and the property runs at a profit of $10,000. Is my total taxable income $110,000?
4) If the answer is yes to questions 2 + 3.
If my partner earns $80,0000 pa and I earn $100,000 pa, and the property is generating $10,000 gross, does this mean for tax benefits, the income is best paid into my partners account? Or is the profit split according to the property share? Then again, the trust owns the property, not us.
I am looking at setting up a discretionary trust where myself and my partner are the trustees and primary beneficiaries. We are looking at purchasing 2 units in the next few weeks in QLD.
I have a few questions that I would be grateful for if you could answer.
1) If both properties are purchased under a single trust name, is land tax accumulative for properties?
2) Can property expenses (including depreciation) be used to offset income tax? Say if I earn $100,000 and the property runs at a loss of $10,000. Is my total taxable income $90,000?
3) As we are the beneficiary, does the income we receive from the trust increase our total personal tax income? Say if I earn $100,000 and the property runs at a profit of $10,000. Is my total taxable income $110,000?
4) If the answer is yes to questions 2 + 3.
If my partner earns $80,0000 pa and I earn $100,000 pa, and the property is generating $10,000 gross, does this mean for tax benefits, the income is best paid into my partners account? Or is the profit split according to the property share? Then again, the trust owns the property, not us.