Tax deductibility for setup of trust?

[affiliate]

When you setup a trust & a trustee company, there are costs involved. Are all these costs tax deductible by that trust? Below are some of them I've got at the top of my head. Maybe there's others I've missed.

1. Setup cost of the trust
2. Setup cost of the trustee company
3. Stamp duty on stamping of trust deed
4. ASIC annual fee for trustee company

 

[MRO]

Deductible over 5 years.

Asic annual fee is deductible in the year incurred/paid.

 

[Terry_w]

There is a section in the 1997 itaa which allows deduction for things not otherwise deducted.

 

[Rob G.]

When you setup a trust & a trustee company, there are costs involved. Are all these costs tax deductible by that trust? Below are some of them I've got at the top of my head. Maybe there's others I've missed.

1. Setup cost of the trust
2. Setup cost of the trustee company
3. Stamp duty on stamping of trust deed
4. ASIC annual fee for trustee company

Is it for conducting a business, or establishment of a special purpose vehicle for holding loan securities ?

Or is it just a trust for holding passive investments ?

Cheers,

Rob

 

[affiliate]

Is it for conducting a business, or establishment of a special purpose vehicle for holding loan securities ?

Or is it just a trust for holding passive investments ?

Cheers,

Rob

Only for holding investment property. Does it make any difference what the trust is used for as to if it can be deducted or not?

 

[Rob G.]

Only for holding investment property. Does it make any difference what the trust is used for as to if it can be deducted or not?

Big difference.

Cheers,

Rob

 

[Mry]

If an accountant set up the entities, you can ask them to split the bill between their services (tax deductible 100%) and the establishment of the entities.

For an entity that will trade as a business, that would be blackhole expenditure (s40-880) which you can write off over five years being 20% of the cost each year without having to split it up on a per diem basis. If not, the costs are not deductible as they are considered capital costs.

 

[Rob G.]

If an accountant set up the entities, you can ask them to split the bill between their services (tax deductible 100%) and the establishment of the entities.

As long as the services are not of a capital nature !

Cheers,

Rob