Hi all, I'm just getting started in the world of property investing and I am putting a bit of effort into trying to get the foundations right (finances, strategies etc) before I get too far into it. One thing I've been reading quite a bit about is discretionary trusts. I recently had a meeting with my accountant to discuss if a trust is suitable for me, and after having time to digest the information they gave me it has only raised more questions. I was hoping someone more experienced on here might be able to save me another trip to the accountant. My situation: -Married, combined income ~$150k. The difference between the wife's income and mine is about $15-20k, can vary from year to year. -PPOR is in joint names -looking to buy 2 IP's in the next 12-18 months. Prefer to renovate and hold, so only looking at properties that have potential to manufacture equity. Willing to consider renovate and flip under the right conditions. -Properties we are looking at are JUST cashflow positive, but any moderate changes to expenses could push them into neutral/negative territory. -I'm considering a trust as it is possible either the wife or I will temporarily stop work or go to reduced hours in the next 3-5 years due to childcare commitments, and it seems like it would be a tax effective structure. -I've no real need for asset protection at the time being, but if I ever dip my toe into property development (possible, but unlikely) it would certainly be beneficial My accountant has told me its borderline - it's possible I would see some benefit from it in terms of income distribution in years to come, but they didn't seem too enthused about the idea as any losses on the property would get tied up in the trust and any potential benefit will be gone. This is where I'm getting confused. I'm curious as to how these losses would be recorded for tax purposes. I'm assuming that all expenses relating to the property (interest, maintenance, the lot) will be applied through the trusts tax return, not the trustee's. And if a property within the trust records a loss then that loss is contained within the trust and can't be offset against the trustee's income. The trust also does not have to pay tax if all income is distributed to beneficiaries within an income year. So can this loss ever be used to offset an income/profit, if the trust always distributes income within the year? The only way I can see would be if the trust retained the earnings rather then distributing profit and paid tax in a particular year. Thoughts on the above? I've also been told by a broker that gaining finance for a trust can make things a little harder, and I'm starting to wonder if it's worth the bother. To trust or not to trust? That is the very confusing question. I think another trip to the accountant may be in order.