Hi All,
have recently read an article on Hybrid Discretionary Trusts, sounds interesting…..
Does anyone know anything of these trusts or use one for investing purposes. The way I read it is that you can claim losses on negatively geared investments shares, properties etc at the highest tax rate of the trustee and income made on positively geared or capital gains made on any investment can be distributed to a beneficiary who is on a lower tax rate ??? Sounds too good to be true !!!!!!!! Can you transfer a property you hold at present into one of these trusts and set it up the same way or must the property be purchased in the trusts name. Obviously I need to do some more home work , but here seems as good a place as any to start [blink]
Cheers
“Shackles Off”Do a search of the forum and you’ll find a lot of info on hybrid trusts.
In a nutshell though, an HDT allows negative gearing with the individual borrower (not necessarily the trustee) claiming the losses against their own income, and CG being discretionally distributed.
I think to transfer an existing property into a trust you’d be looking at CGT and stamp duty again.
Dale Gatherum-Goss has a good b00k called “Trust Magic” which gives a layman’s overview of using trusts for investment purposes.
http://www.gatherumgoss.com/shopping.htm
GP
thanks for the reply GreatPig ……..
will sus it out
Cheers
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