The Trading Trust

by Cassie Henning

Trading Trust

If you are a Wealth Masters Club member, you must have heard about a “Trading Trust” by now, especially in the context of cash flow projects like gold investments and crypto-mining. But what is it? How is it used? In this article, Cassie Henning explains the basics of this important tax saving vehicle.

In the Wealth Mastery System, we learn to split or separate our risk. This is done by means of Family-, Property-, Residence- and Share trusts. But as the world changes, the trusts must also keep up.

The new kid on the block is the Trading trust.  What is a Trading trust?  How do I use a Trading trust?

The Trading trust is a very lucrative tax vehicle that can help with a tax saving up to 45%. However, this trust must be in the right place at the right time. The question still remains, what to do with a Trading trust?  The Trading trust is a cash flow machine that will assist the trustees to generate cash flow to buy more properties.

With the help of Gold and Crypto's, one can achieve the passive income that will allow you to maintain the shortfalls in the trust and make bigger deposits into your property portfolio. The Trading trust is a cash projects trust.  This trust will be the owner all the cash projects you might have, projects like Karatbars, Bitclub, Lifestyle Galaxy, just to name a few.

With the financial year end just around the corner on 28 February 2019, we found that not many people know exactly what to do with the tax related to these cash flow projects. Well, Destinata Accounting can help.  Different projects are taxed in different ways, and it is important for you to keep record of all transactions and statements. PLEASE REMEMBER to save all transactions, balances and amounts invested into these projects for the 28 February year-end, as your accountant will need it to draft your financial statements.

Your accountant can then assist you with your tax matters, even if it is in your personal name.  Please also bear in mind that if you are trading in your personal name, you will have no tax saving and will be taxed according to your individual SARS tax bracket for the year.

The importance of the Trading trust is sometimes underestimated.  When it comes to tax saving, a trust is the only legal entity that can assist in that.  If the trust is in place (and correctly so), your accountant will make use of the conduit principal to plan your tax and get the most of out your unique tax situation.

Here are 6 things that must be in place before your Trading trust can be fully operational: