Month: September 2016

Find out why using Trust to own investment property – Distributing income and capital gains For taxation purposes, a discretionary trust provides maximum fl exibility in terms of the annual net rental income of the trust and/or any capital gain on the sale of an investment property. This is because the trustee has the discretion …

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Find out why using Trust to own investment property – Recouping tax losses Any negative gearing loss generated by a property owned by a trust is usually trapped in the trust, unless the trust has other income to offset the loss. While the trust can theoretically carry forward tax losses for an indefinite period, the …

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Find out why using Trust to own investment property – Passing on 50% CGT discount Unlike a company, which is not eligible for any capital gains tax (CGT) discount, a trust is eligible for the 50% CGT discount provided that the trust has held the property for at least 12 months before it is sold. …

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Find out why using Trust to own investment property – Passing through depreciation and capital works benefits Perhaps one of the main reasons for trusts being favoured as a property investment vehicle, instead of a company, is its ability to pass on any net cash profit. These profits can be passed from the property that …

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