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Hello,
If I transfer my existing PPOR to trust
I Have Heard That You Lose Your Negative Gearing Tax Benefits In A Property Trust. Is
That True?
Yes that is true (subject to two exceptions).
In a family discretionary trust, you will lose your negative gearing benefits because
you have to claim them in the trust, not in your own name. This is a problem if you
are a high income earner.
There are, however, three ways to avoid this:
* Multiple Trusts. If you earn income from share trading or internet marketing
or any business income through the same trust as your negatively geared
property, or through other trusts, you can shift some or all of that income
into your property trust to offset against the negatively geared property loss.
So for example, if you have a $15,000 negative gearing loss, and you make a
profit of $20,000 from share trading in another trust, just shift $15,000
of that income into the property trust, and you will only pay tax on $5,000.
* Hybrid Trust. This is discussed below.
* Family Discretionary Trust with Loan Agreement. You borrow the money
in the name of the high income earner and lend it into the trust at a
commercial interest rate.
Speak to one of our specialists further about these options.
Hello,
If I transfer my existing PPOR to trust and use the money for funding my new PPOR, can I claim the interest expense for my new 100% LVR loan for the old PPOR?
Can I negative gear an IP with family trust?
mx5 why not ask them who wrote their trust deeds?