Property Trust Tax Return

Trusts that hold investment property have their own set of tax return requirements, separate from an individual rental property return. A One Accountants prepares and lodges property trust tax returns for trustees across Melbourne, covering everything from rental income and deductions to distributions and capital gains when a property is eventually sold.

What Goes Into a Property Trust Tax Return

• Rental income received by the trust across all properties it holds
• Deductible expenses – interest, agent fees, repairs, council rates, depreciation and insurance
• Distributions to beneficiaries and how each beneficiary’s share is taxed in their own return
• Capital gains tax (CGT) treatment when a trust property is sold
• Trustee resolutions confirming how income will be distributed before 30 June

Property Trust Tax Return Requirements

A trust must lodge its own tax return each year, separate from any individual beneficiary returns. The trustee needs to have made and documented distribution decisions before the end of the financial year – leaving this until after 30 June can create tax problems that are difficult to fix retrospectively. Beneficiaries then report their share of the trust’s income in their own individual, company or trust tax return.

Property Trust Tax Return Due Date

Trust tax returns generally follow the same lodgment timetable as other entity types – 31 October for self-lodgers, with an extended deadline when lodged through a registered tax agent. If the trust is newly registered or has specific circumstances, the applicable date can vary, so it’s worth confirming your exact deadline with us directly.

Property Trust Tax Return Cost

Fees depend on the number of properties held, the complexity of the trust deed, and how many beneficiaries receive distributions. We agree a fixed fee upfront once we understand your trust’s structure and portfolio.

Frequently Asked Questions

Do I need a separate tax return for my property trust?

Yes. The trust lodges its own return reporting the property income and expenses, and beneficiaries separately report their share of the distributed income in their own return.

What happens if the trustee doesn’t make a distribution decision before 30 June?

The trust may be taxed at the top marginal rate on undistributed income, which is usually far less favourable than distributing to beneficiaries. Getting the trustee resolution done before year-end is important.

How is capital gains tax handled when a trust sells an investment property?

The capital gain is calculated at the trust level and then distributed to beneficiaries as part of their share of trust income, who report it (and any CGT discount they’re entitled to) in their own return.

Can a property trust claim the same deductions as an individual landlord?

Broadly, yes – interest, agent fees, repairs, rates, depreciation and insurance are all deductible to the trust in the same way they would be for an individual investor.

How much does a property trust tax return cost?

It depends on the number of properties and beneficiaries involved. We provide a fixed quote once we understand your trust’s structure – get in touch for a specific price.

See also: Company Tax Returns, Owner’s Corporation Tax Return, and Trust Tax Returns Melbourne.

Lodge Your Property Trust Tax Return

Call 1300 A1 AONE (1300 212 663) or message us on WhatsApp to arrange your property trust tax return.