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Francesco, I believe you are talking about a Hybrid Unit Trust. Dale talks about Hybrid Discretionary Trusts. There are many types of hybrid trusts out there.

Negative gearing is just the result of having more deductions than income. The point to negative gearing I believe is that you are paying off an income producing asset which will increase as time goes by, in addition to the loan being paid off. Many do purchase with the expectation of making a...

If I might throw a spanner in the works to get you thinking, the SIU units are issued for $1. They are redeemed by the trust for $1. If you bought the units on the understanding that they would be redeemed for $1, doesn't that change the way you would treat the capital gains at the end? In...

When the distribution from the HDT is greater than the interest incurred by the individual, I would refinance the loan by effectively changing the name of the borrower from the individual to the trust. At the same time, I would redeem the units for the same price as they were purchased ($1 per...

Its just at accounting school, they teach that assessable income includes capital gains, eg s105 ITAA Your assessable income includes your net capital gain (if any) for the income year. For some reason in this IT has decided to split it up. Actually, I have never seen that elsewhere...

It is amazing how often I go back to refer to this thread, but examine this quote of Chris Batten's. Emphasis added by me. Just because a trust deed says something doesn't mean the tax commissioner will be forced to agree. I have no doubt that the tax commissioner will agree with the...

I totally disagree. Capital and capital gains are two different things. I completely disagree with your conclusion too. Basic statements here or there on a subject completely different from HDTs, which you then draw out to create posits, do not create definitive statements. I have said...