Can we rent out our family trust owned property?
Question from Tara P Adhikary updated on 5th September 2008:
Can we rent out our family trust owned property?
Do we get a tax return on loss if we do that? Is it true that the family trust needs to get registered to GST?
Our expert responded:
Yes, you can rent out any property owned by the family trust. If the trust makes a loss renting out the property, that loss in retained in the trust and is carried forward to offset against future profits. A trust is not required to be registered for GST unless it is renting out commercial property with more than $40,000 of income, or a business that has a $40,000 or more turnover.
Kenina Court is a director of Acorn Solutions Limited, an accounting firm dedicated to working with clients to help them create wealth. She is an avid property investor, entrepreneur and seminar presenter on asset protection and wealth strategies.
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