Is trust more cost effective for this simple scenario?

[geoffw]

The taxable income would have been $100k less indexation in today dollars. 4% is perhaps a bit generous.

But even then it's an increase in one person's taxable income by a big amount, vs tax on two individual incomes of half a big amount. And if that's the only income either person has by that time then somebody has done a very poor job in retirement planning.

I'd be extremely surprised if the property is still negative after 15 years anyway. I'd be thinking perhaps 7 years to become neutral.

 

[Terry_w]

but if he had sold in 15 years time, then the $48k would only be ~$23k in today dollars (@4%) correct? Also at that stage if they had both retired it wouldn't make a difference either way as the capital gains would apply against their income for that year correct?

Thats a big 'if'