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How to treat a loss in a trust

Posted 14 April 2016 under Tax Questions



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Annie says:
8 April 2016 at 13:56

Can we deduct expenses against a nil income, creating a loss, in a trust?

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TaxTimTaxTim says:
11 April 2016 at 7:19

You can and this will be carried over to the next year if you make a profit.


Annie says:
11 April 2016 at 11:04

SARS disallowed this because of Section 11 (a) read with Section 23(g) Please advise.


TaxTimTaxTim says:
14 April 2016 at 9:40

Well, it depends on the actual expenses, in theory losses can be carried forward. The disallowing of expenses is before the loss is created so it depends on what the expenses are and if the trust ever makes a profit. 11(a) and 23(g) reads that expenses must be expenses for the purposes of trade, if the trust is not seen to be actively trading then the expenses are disallowed.


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