Could an accountant or structure person look at this for me:
Rental Trust - makes 35k loss March 2010.
Trading Trust - makes 35k profit 2011.
The Trading Trust makes a distribution of taxable income to the Rental Trust.
I dont understand fully the ramifications and get confused about the specifics of moving actual moneys about.
1. The Trading Trust doesnt have to pay tax on the 35k.
2. The Rental Trust owes the Trading Trust now - what is that like a loan, if so is there RWT issues ?
3. The distribution of taxable income is a cash movement or just a paper trail ?
4. The actual 35k profit stays where?, is it now in the Rental Trust and can be taken out ?
Rental Trust - makes 35k loss March 2010.
Trading Trust - makes 35k profit 2011.
The Trading Trust makes a distribution of taxable income to the Rental Trust.
I dont understand fully the ramifications and get confused about the specifics of moving actual moneys about.
1. The Trading Trust doesnt have to pay tax on the 35k.
2. The Rental Trust owes the Trading Trust now - what is that like a loan, if so is there RWT issues ?
3. The distribution of taxable income is a cash movement or just a paper trail ?
4. The actual 35k profit stays where?, is it now in the Rental Trust and can be taken out ?
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