Hi, Is it possible to do negative gearing through Family Trust with a Company as a trustee? What are the advanatage or disadvantages? Thank. Cheers, Rajiv
Not directly - losses are quarantined within a trust and are not distributable to the unit holders ... thus they cannot be used to offset other income sources outside the trust. There are alternative structures, usually referred to as "hybrid trusts", which use a combination of discretionary trusts and unit trusts to achieve negative gearing situations - but they are a bit more complicated, and I believe are still under review by the ATO. We have a few hybrid trust experts here (NickM, our resident accountant is one such expert). Having a company as a trustee (as opposed a personal trustee) doesn't make any difference to the issue of negative gearing.
Access to Nick Hi, Is Mr. Nick accessible through this website to discuss issues on Hybrid Trust? Thanks. Cheers, Rajiv
Yes he is able to discuss the concepts and issues with hybrid trusts in a general sense (and we encourage that) - but for specific advice, you'd need to make an appointment directly with Strategic Wealth Management.