Is the cost of setting a trust deductible?

[DonG]

Since the trust has yet to make an income, can the cost of setup offset other income?

 

[pickle pickle]

Cost of setting up a trust can only be allocated to trust income. IE. if trust makes tax loss, those losses are carried forward into next year. Can't offset trust tax losses with other income that a person may earn.

The cost of setting up a trust needs to be apportined over 5 years.

 

[Rob G.]

Since the trust has yet to make an income, can the cost of setup offset other income?

The cost of setting up a trust is not deductible in the ordinary context of investment.

Nor can it be included in the cost base of an asset.

Cheers,

Rob

 

[bernardp]

You may be able to claim a deduction of the setup over five years under the Section 40-880 Blackhole provisions.

http://law.ato.gov.au/atolaw/view.htm?docid=SAV/00096847/00024

See the example.

Cheers

Bern

 

[Rob G.]

You may be able to claim a deduction of the setup over five years under the Section 40-880 Blackhole provisions.

http://law.ato.gov.au/atolaw/view.htm?docid=SAV/00096847/00024

See the example.

Cheers

Bern

This is only for the pupose of operating a *BUSINESS*.

Cheers,

Rob

 

[bernardp]

Perhaps the poster has a business he operates a trust from?

No one does that in this country do they?