I have a family trust that previously owned shares in a company I operated a business from. The company is now shut and family trust is holding a loss of approx 100k. How can I use this loss? I run a new business currently as a sole trader......could I move this business activity to operate from the family trust to access the loss for tax purposes? If so would I need to set an ABN up for the family trust?
Hi @Brendan123,
Deferred losses can only be applied to the entity in your case the family trust that it occurred on originally.
If the trust is the same trust, same ABN, then the deferred loss can be applied. Even if the new business is separate from the prior one, as long as the entity is eligible to offset.
Hi @Brendan123,
Deferred losses can only be applied to the entity in your case the family trust that it occurred on originally.
If the trust is the same trust, same ABN, then the deferred loss can be applied. Even if the new business is separate from the prior one, as long as the entity is eligible to offset.
Thanks for the feedback. It would be the same trust operating the new business, but the trust previously was just holding a share in a company (the usual structure for distributing to family) so doesnt have an ABN from memory, but now trust would be operating the business without a company structure, so I would need to get an ABN for this trust. I assume this would still allow offset of the past losses? (the trust was previously for investments, but would now be a trading trust)
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