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Exactly. The funds are not borrowed and I'm not trying to claim an interest deduction so it doesn't concern the tax office. Thanks for the replies.

Hi GP and Bort, I didn't make it very clear but I meant to say the income in my example was distributed to the unit holder, added to their taxable income, and then loaned back to the trust with a non-interest bearing loan. Ebbie.

Dale, Just getting back to income distributions for a moment, and apportioning the distribution based on the purchase price to SIU's issued, say the trust invested $200K into a managed fund (with $100K raised from the SIU's and $100K being funds already in the trust). Initially 50% of the...

Hi Dale, does your office policy have exceptions to this rule? For example, with Capital Gains aside, what if you had $100K special income units issued but the investment was initially purchased for $200K ($100K using funds already in the trust). Do you think it is reasonable to only...