"RE: Profits to trust, loss to me?"
Reply: 1.1.1.2.2.1
From: Duncan M
AL,
I found this at the ATO Web Site:
"Who can depreciate plant?
Only owners or quasi-owners can depreciate plant. You will be treated as the
owner of the plant for depreciation purposes if you are the legal owner or
you hold sufficient rights over the plant to characterise you as the owner
in preference to any other person who also holds rights over the plant.
Quasi-ownership covers the situation where plant is attached to land that
you do not own but have a right to use. This only applies where the land is
owned by certain Australian and foreign government agencies. An example of
quasi-ownership is where you have a Crown lease and have attached plant to
that land after you acquired the lease.
Quasi-ownership also applies to plant which you have leased to a lessee and
which has become a fixture on land that you do not own, provided certain
conditions are met.
If there is a quasi-owner, only the quasi-owner can claim depreciation. If
you are not sure whether you are the owner of the plant, contact your
professional tax adviser or ring the ATO."
I'm unsure what the upshot is..
Duncan.
-----Original Message-----
From: propertyforum Listmanager
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Subject: RE: Profits to trust, loss to me?
From: Duncan Margetts <
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Hi AL,
I seem to recall a Peter Spann scam that revolved around leasing carparking
spaces from other owners in an Apartment Block, because he then effectively
controlled the asset he was entitled to the depreciation. I'll have a dig
around the ATO website later and see what I can find..
Duncan.
-----Original Message-----
From: propertyforum Listmanager
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Subject: RE: Profits to trust, loss to me?
From: "Always Learning" <
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Ducan said
<p>
in fact I think you'd even
be able to access the depreciation personally as I believe just controlling
an asset is enough to be able claim the depreciation..
Could someone explain this a little more (Duncan?). This is bit different to
my understanding of what a trust is an how it works. How can you claim
depreciation on your personal tax IFF (
if and only i
f) the
asset is not "owned" by you?
<p>
BTW Doesn't this seem a great way to get out of the dilemma of "How do I buy
and new PPOR and let out my old PPOR and still claim maximum tax benefits?"
Buy the new PPOR in your name, lease it to your trust and then have the
trust least the property at market rent to your wife/husband/significant
other!. Whilst it is my original thought, I am sure it has been considered
and tested before...does it work?
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