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Claiming a Loss from Family Trust

Discussion in 'Introductions' started by TaxDiva, 15th Apr, 2011.

  1. TaxDiva

    TaxDiva New Member

    15th Apr, 2011
    Brisbane Qld
    Hi Investors. I am new to forum. I have a very specific question regarding my family trust. My husband and I set up a family trust 3 years ago and the trust purchased our PPOR. We have used 1 tax agent to complete and submit our tax returns for the last 3 years and this agent has claimed the loss in the trust against my husband's income which has resulted in a very healthy tax return. I have just changed tax agents and the new agent advises that this loss can not be claimed against any individual. We are both the sole directors of the trust. Using tax agents on both occasions I assumed the the strategy to approach the returns would be similar. I will be seeking advice from a number of sources. Can anyone advise if the losses can be claimed by the Trust Directors and what conditions need to met me.
  2. jrc77

    jrc77 Well-Known Member

    26th May, 2008
    My understanding is that the loss in the trust cannot be offset against the income of a beneficiary of the trust (or director of the trustee) and can only be applied against future profits. Of course if you have other trusts/structures their profit could be distributed to the trust and offset the loss.

    I'm not an accountant, but do have a family trust.


  3. builder2818

    builder2818 Well-Known Member

    31st Dec, 2008
    Your previous accountant was very stupid....I hope the ATO doesn't track you down.

    You cannot claim the losses of a trust in your own name. Losses get carried forward but remain in the trust. I trade through a family trust and had a $26,000 loss last year and I would love to have that loss offset my tax income for myself but I cannot.

    In a way it is good - so far this year I am in profit $15,000 and I won't have to pay any tax on it and not worry about distributing to any beneficiaries except my own bank account.