Who pays for the trust mortgage?

[Exotic pumpkin]

Hi PT,

If I were to sell the property from my personal name to Trust, with Trust refinancing the loan currently under my personal name. I will be living in the property. Just wonder can I still make payments from my personal income to repay the loan down? (as the trust itself does not have any income), or will the loan payments from me be treated as gifting?

Also if the trust does not have any income, but has a loan, does it need to file tax return or not?

Any clarification on this will be great. Many thanks.

[Rosco]

There was a post on this around a month or two ago. It all depends on the trust documentation and minutes. It could be either way, ie you pay the interest or the Trust pays it.

As for the tax return, technically the Trust should have an IRD number, but in reality if there is no taxable activity, its not really needed.

Ross