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Can primary production land in a trust for a child qualify for farm expenditure deductions from the trustees personal income tax ?

7 years ago

Responses

Glenn Hilber

Current Rating: 4.96 / 5

Financial Planner

North Lakes, QLD

7 years ago

Hi Jude,

No. Trusts can't distribute losses to beneficiaries or trustees.

Cheers,

Glenn

Allan Faint

Current Rating: 4.14 / 5

Mortgage Broker

Hobart, TAS

7 years ago

I am sorry I cant answer that. It is a question for your accountant. If you don't have one I would suggest you call Louise Bloomfield of Bloomfield and Associates in Hobart. 03 6231 6886.
cheers
Allan Faint

Andrew Jeffers

Current Rating: 4.88 / 5

Accountant

Sydney, NSW

7 years ago

Hey There,

OK the answer is yes and no.

1. Is there a profit motive?

2. Is there income? You must have a profit motive to be able to deduct expenses.

3. Glen is correct you can not distribute losses but you can store them up and carry them forward.

4. And it would not be for the Trustees personal return. You have to remember that a Trustee acts with different hats. One for the Trust as Trustee and one for themselves as a citizen. These should never overlap.

Hope that helped.

AJ