SearchTax & family trusts
Meghal asks:
(updated on Friday, April 26th 2019)
How is the tax handled for the properties in a family trust? If we pay about $75,000 of personal tax in a year how much of it can be written off through rental property tax losses and how is it calculated?
Our Experts Answer:
Your question is frustratingly ambiguous. All I can really offer is that tax on income derived by a trust is 33%, the same as the high marginal rate for individuals that reaches 33% at $70,000 of income. Re: the second leg of your question - be advised that the ability to offset residential rental losses against other income is being removed by this government from 1/4/19 with the introduction of residential loss ring fencing rules.
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