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Trading Account via a Trust Account

Discussion in 'Accounting, Tax & Legal' started by michaelbb64, 3rd May, 2010.

  1. michaelbb64

    michaelbb64 Member

    Joined:
    25th Apr, 2010
    Posts:
    5
    Location:
    Logan, Queensland
    Hi All

    Can some please explain or point me to a site that help me with the following question.

    How is Trading Account via a Trust Account tax beneficial ?

    Thanks
     
  2. Superman

    Superman Well-Known Member

    Joined:
    6th Nov, 2007
    Posts:
    343
    Location:
    Gold Coast, QLD
    The good:
    Ability to distribute the profit to beneficiaries with lower marginal tax rates.

    Also better asset protection if structured correctly.

    The bad:
    Losses get trapped in the trust and can only be used to offset future profits / gains.

    Additional administration costs.