All Topics / Legal & Accounting / Help needed!!!!

Viewing 4 posts - 1 through 4 (of 4 total)
  • Profile photo of god_of_moneygod_of_money
    Participant
    @god_of_money
    Join Date: 2008
    Post Count: 970
    April 27, 2008 - 5:21 am

    Hi All,

    How do I legally negative geared my IP property (under TRUST) against my income?
    I heard you can do I so- called 'Hybrid Trust'
    I was being told that if majority equity (i.e. 50%) borrowed against my PPOR
    and the rest secured against IP (under TRUST), I can claimed 50% interest deduction against my income?

    Is that true?
    I thought that if buying IP under company TRUST will not be able to claim tax deduction against income?

    Thank you

    Cheers
    Don

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    April 27, 2008 - 11:12 am

    If your trust owns the property then it has to claim the deductions. Losses from a trust cannot be offset against personal income.

    A way around this is to use a unit trust or a hybrid trust and to borrow in your personal name to buy the units. This allows negative gearing in a trust, but the trusts will be restricted as far as flexibility to distribute income is concerned.

    it doesn't matter what is used as security, deductibility depends on who borrows the money and what it is used for.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of stuliamstuliam
    Member
    @stuliam
    Join Date: 2008
    Post Count: 1
    April 27, 2008 - 11:26 am

    Hi,
    I am currently doing some study and I am hving diffiworking a few things out. My scenario is this

    Company A is going to buy a Trust unit.   From Company A Mary is buying 40% John is buying %40 Sue is buying %20

    I want to know what the stamp duties liability is of Company A purchasing the shares as above.  The business (The trust) is being purchased as an ongoing concern. So GST is pretty straight forward.  

    Regards

    Stewar

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    April 28, 2008 - 9:16 am

    Stewar

    You haven't worded that very well, so it is unclear what is happening.

    Is company A going to buy a unit (a flat) is units in a unit trust?

    Is Mary etc buying shares in the company or is she buying a percentage of a property that the company is selling?

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 4 posts - 1 through 4 (of 4 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.