Tax office target trust scheme

[WebBoard]

From: H T


Folks

in todays age
"people who bought their family home through a trust to claim tax deductions - normally available only for ip's could soon be hit with a tax bill"
blahblahblahblah
draft legislation will rule invalid any tax breaks claimed by people using trusts to purchase their own home..

A big reason not to go near 'em me thinks

HT

 

[DaleGG]

Reply: 1
From: Dale Gatherum-Goss


Hi

As always, it's more of a fear strategy than a fact. A tax ruling is not worth the paper it is written on unless the tax office wish it to be. . . .

This is old news and relates to unit trusts rather than family trusts.

Don't get frightened off and wait for the fine print.

Dale

 

[Glenn]

Reply: 1.1
From: Glenn Mott


Dale, would this mean that under current rules, you could rent a property from your own family trust and have the trust claim any expenses?

Glenn

 

[DaleGG]

Reply: 1.1.1
From: Dale Gatherum-Goss


Hi Glenn

Yes, as I understand the current rules, you can. As always, you would need to keep the deal on commercial terms to protect yourselves and document everything.

Have fun

Dale

 

[paulzag]

Reply: 1.1.1.1
From: Paul Zagoridis


Dale obviously knows this but...

The Income Tax Assessment Act's anti-avoidance provisions ensure you need good commercial reasons to structure it like that.

Should they disallow the deductions, it's not as if the structure never occurred. You have all the pain and none of the benefits of the deal.

Paul Zag
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