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  1. J

    Why I think aspects of the HDT will fail!

    You are abosolutely right it is difficult to get an employer to co operate but this was once the case for novated leases. We just need enough people out there pushing. That is why I created the kit so that it was easy for the employer to get an ATO ruling. There is also no point if you do...
  2. J

    Why I think aspects of the HDT will fail!

    You can salary sacrifice the interest rates etc for both the owners of the property effectively giving the high income earner a deduction for all the expenses and just splitting the rent and depreciation on the basis of ownership. Usually means the property is positively geared to the low...
  3. J

    Why I think aspects of the HDT will fail!

    GSJ, That's right, at worst no negative gearing for the whole time of the investment plus penalties. So the question is are HDTs worth the risk when there are usually other ways of achieving the same end and they are cheaper. I'm am not saying HDTs "will fail". I really...
  4. J

    Why I think aspects of the HDT will fail!

    Have a read of TR95/33 GSJ, By conservative I mean that the units are redeemed well before any distributions are made to the discretionary beneficiaries. The NTAA are a professional body for accountants that is a bit more agressive than most. Their web site is www.ntaa.com.au. Anyone can...
  5. J

    Why I think aspects of the HDT will fail!

    Testing Thanks Joannak, This is a test run. It was the quoting part of a post that I couldn't work out so hopefully this works. Julia www.bantacs.com.au
  6. J

    Why I think aspects of the HDT will fail!

    Great Pig - Well this is the otherside of the line. The ATO says it is ok to take advanage of concessions offered by the law (some would say that is what a HDT does) and normal family or business arrangements. GSJ - Possibly, this depends on the rights given to the units by the deed. But...
  7. J

    Why I think aspects of the HDT will fail!

    RE a page back Ali G, For the negative gearing to work the high income earner must own the units. Now to try to keep the arrangement clean the units must have some rights. In this thread so far it seems most agree the right is to a future increasing income (depends on the deed). The...
  8. J

    Why I think aspects of the HDT will fail!

    Anyone had an audit after property sold? Mry- "you pull out Part IVA is a nonsensical manner. What sinks people in Part IVA is if they enter an arrangement purely for tax purposes, there is evidence of such and no other reason (I'm paraphrasing massive sections of tax law here)." It is not...
  9. J

    Why I think aspects of the HDT will fail!

    HDT & Your Own Home In Tabone v FCT 2006 ATC 2211 the AAT found that the primary purpose of the borrowing was to provide a residence so the interest was not tax deductible to the trust. They also said Part IVA applied The case was intended to decide whether you could negatively gear...
  10. J

    Why I think aspects of the HDT will fail!

    Salary Sacrificing Rental Property expenses Payroll varies from state to state but yes the employer would not have to pay superannuation on the portion of the package sacrificed so this should be part of the negotiations. Julia Hartman www.bantacs.com.au
  11. J

    Why I think aspects of the HDT will fail!

    HDT reluctantly Due to the NTAA supporting the concept of Hybrid discretionary trust we have faith in a concervative version of the concept but we have yet to find a situation where we cannot apply a more proven method of tax minimisation. Shop around see what the doubters have to offer in...
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