As you are probably already aware, trusts now have more reporting requirements with the IRD. However, in some circumstances, trusts, especially family trusts, may have been made non-active with the IRD, which means there is no income to report (and no tax to pay).
Although a trust may not generate any income, and therefore may not be required to file an income tax return, it is still important to prepare financial statements for several reasons.
While not compulsory if a trust does not earn income, or has passive income below the $1,000 threshold, for the reasons outlined above, we consider it best practice for all trusts to prepare financial statements.
Please contact GRA if you would like to know more about completing financial statements for your trust, and we will be happy to provide you with a quote.
Thank you for presenting an excellent course in your Property School 101 over the last 6 weeks. We really enjoyed it, gained good value from it plus the necessary confidence and knowledge to move forward in the property market. We will be in touch, soon, for a review of our trusts and entities to ensure we have these established properly to fully protect both our assets and income and to gain full advantage. All the best. - John
Gilligan Rowe and Associates is a chartered accounting firm specialising in property, asset planning, legal structures, taxation and compliance.
We help new, small and medium property investors become long-term successful investors through our education programmes and property portfolio planning advice. With our deep knowledge and experience, we have assisted hundreds of clients build wealth through property investment.
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