Family Trust Capital Gain Discount

Hi Everyone,

Thanks to Dale, I have my family trust already set up. However, I went to a seminar today and the speaker was talking about that the 50% capital gains discount does not apply to family trust.

Is this true? I was under the impression that a family trust with a private company as trustee do have the benefits of the 50% capital gains discount when it sells a property after holding it for 1 year.

Thanks
Henry.
 
Originally posted by henryye
Hi Everyone,

Thanks to Dale, I have my family trust already set up. However, I went to a seminar today and the speaker was talking about that the 50% capital gains discount does not apply to family trust.

Is this true? I was under the impression that a family trust with a private company as trustee do have the benefits of the 50% capital gains discount when it sells a property after holding it for 1 year.

Thanks
Henry.
HI Henry!

I cannot believe how ignorant and misinformed the speaker must have been. Any decent accountant or solicitor will tell you that the discount is indeed available.

In fact, the Financial Review had a very good series of articles on trusts today and some of the more respected legal minds in the country confirmed that this is one of the advantages of a trust over a company.

What other bullshit did they tell you??

Sheeeesh!!!!!!!

Dale
 
Thanks for the reassurance Dale!

The speaker talked about how he is a multi-million (typical of any seminar speaker) and that he has a "secret recipe" for wealth creation .... wait for it .... negative gearing..... then comes all the consultants that have loads of off-the-plans for sale.

it was a free seminar and I won a big lucky door prize... but still a waste of time.

Henry.
 
It's hard to negatively gear through a family trust. Maybe it wasn't ignorance speaking.....

Not that I would suggest ulterior motives, of course.

Bob
 
Originally posted by Kevmeister
Hard to negatively gear? Or impossible? Can trusts carry losses forward (and for how long)?
Hi

Yes, trusts can carry losses forward indefinitely.

Dale
 
Also there's a beast called a hybrid trust. I've read about them and they look interesting and offer effective negative gearing.

Dale is cautious about them as there's no case law (correct me if I'm wrong, Dale) so that makes them a risker strategy if the ATO decides that they are solely a tax dodge.

Bob
 
Hi

It is lost forever. We used to see people buying old trusts with large losses hjust to absorb those losses against their current income. However, it is not so easy anymore and I understand that the market has dried up. Pity!

Dale
 
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