FAQ 48 – Can I rent from a trust where I am a beneficiary and claim normal rental expenses.

There is an ATO ruling regarding this issue.

http://www.ato.gov.au/rba/content/?ffi=/misc/rba/content/83291.htm

http://law.ato.gov.au/atolaw/view.htm?DocID=ITR/IT2167/NAT/ATO/00001

There are also a number of posts on the web one of which.

http://www.bantacs.com.au/QandA/index.php?xq=233

http://www.bantacs.com.au/QandA/index.php?xq=226
Opinion is mixed as to whether this is a fully legal arrangement if the trust intends to claim for all of the usual expenses. One view is that it cannot as it is not an ‘arms length ‘ arrangement.

The best way to handle this and any situation where there is no definite answer is to apply to the ATO for a private ruling

Regards

Michael & Sara

Ultimate Coaches