Search results

PBRs are to confirm the tax treatment of your strategy, they do not ratify it. You can't make up your own mind on what the tax treatment will be. And there is a right or wrong answer with regards to the question - "Can you negative gear or not?" Either HDT users who negative gear are sitting...

Based on advice I have received, I am going to hang back from lodging the private binding ruling for now. I'll wait for confirmation of some other items before I proceed.

No. As stated before, the negative gearing aspect is number one. If you can't negative gear them, you might as well use a DT. If you can, I can ask further questions. With regards to redemption, that will require further complicated issues to be dealt with, specifically how you can tie the...

Yes, I talk about that in the article I wrote at Point 2. The arms length problem is indeed a problem when it comes to redeeming the units because whatever the market value is, it overrides any amount put on the redemption form. Anyway, I now have an MGS HDT deed on hand and all the forms...

No. Issue #1 is - Can a HDT negative gear?

I'm not offended, I'd rather be right than educated, qualified and experienced but it would be hard to separate that out. However, I plan today to purchase a HDT from MGS and draft a private ruling to the ATO on the deed as of today. I will make it clear that I intend to enter the arrangment...

I've half a mind to buy a stock standard Macquarie HDT, use the standard forms it comes with to issue myself units, get a credit card, draw down the cash, dump it into the HDT and buy shares and then lodge a private ruling. Shouldn't cost more than a grand to do.

Yes sorry about that. Our understanding is marred and corrupted by taxation law, case law, private rulings, tax rulings, university educations and professional opinions from operating for too many years as tax agents. If we were unfettered by such I am sure we would agree with you.

If the ATO could be convinced, that's all that matters. For myself, I would be interested in an argument that states that it makes commercial and financial sense but I have a great deal of difficulty construing one. Accountants are amateur tax lawyers. We have just as much to deal with as a...

There's nothing at all in the ruling that states that the property will remain negatively geared. I don't know where Ed is inferring that. The ruling doesn't even suggest such a thing as a reason for denying the application. The only thing Ed could probably be referring to is that the capital...

Thanks Eddie. 4:35 is the area to listen from where he refers to PBR 66298.

Fletcher's case wasn't about long term, it was about incurring a revenue loss now in the expectation of receiving a gain in the future. If someone purchases an investment property, owns it for a year and then sells it, it would be assumed (rightly) that the person purchased it because they...

Shadow, I wrote an article on hybrids and the link is in the second post to this thread. The NTAA links are here - http://www.ntaa.com.au/media/associationatwork/usinghybridtrusts.html and here http://www.ntaa.com.au/media/associationatwork/yourassociationatworkapril2007.html There is...

I don't know what deed you are reading, but I haven't read a hybrid deed yet that sets the right in stone. At best, the trustee can make up any units they like and assign rights as they see fit. I guess this is an agree to disagree. You can take the position you like, but I will take the...

You mean 28993? That's one. There's also 66298 that says they don't. Don't go selectively quoting thing to support your position and ignore the ones that don't. The fact the deed doesn't assign rights to the units is bad. The rights to the units aren't enshrined in stone. There is a...

Julia more than understands the claims that HDTs offer, she just can't find any support for the claim of Negative Gearing without giving the units rights to the capital of the trust. Neither can I. Bold statements. Please lodge a PBR with the ATO to prove this treatment as you have described...

Secret Squirrel, are you trying to troll here? Perhaps you could learn to be less offensive when making comments. I'd prefer to be right more than anything else. I picked up two technical errors when I read one of Ed Chan's books. Making money is a measure of success, but it is a poor...

I probably should have warned you about that.

There are only three things that will satisfy me enough to use a hybrid, and I talked about them in my article. What would prove once and for all that you can negative gear with a hybrid? 1. A Tax ruling (most likely). 2. A court ruling (most authoritative). 3. Announcement from the...

Austini, I would recommend that you look at Dale's August article, particularly the first three paragraphs. Also have a look at the NTAA Voice article as well. The issue is actually as black and white as I put it. If the deed says the units must be redeemed at cost, and many do, you have a...