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Yes, but print the information off the web site first and discuss it with them. No point in buying the form etc if they won't do it.

My response about salary sacrificing rental property expenses was specific to David Mc's circumstances. Eariler I asked him for his particular circumstances because the solution varies. I am happy to give an answer for other scenarios if you want to post them. David in 10 years from now...

David Mc If you owned the property 1% in your name and 99% in your spouses and used the rental property salary sacrifice concept discussed on www.bantacs.com.au you would have asset protection on 99% of the property and 100% deduction for the cash flow expenses of the property with...

David, Have you read these threads and the PBRs? Why are you choosing to use a HDT? What are your circumstances? Why do you think a HDT is the only way to achieve the result you want? Have you sought the latest opinion from the person that set up your HDT?

John, The ATO has responded with 4 rulings against Hybrids. They are only IDs but at this stage it looks like the only answer we have from the ATO is the negative. So I would have to say don't go into them until you have a positive ruling from the ATO for your particular deed. The IDs...

GSJ, Another nail on the head.

Alex, You hit the nail on the head of what they are trying to say in the PBR. They are saying there must be an income producing purposes to qualify for a tax deduction and asset protection is not an income producing purposes so the cost of protecting your assets is not deductible.

You've got me Alex. I cannot work out the link between your last post and mine. Some how I suspect it is very clever but too clever for me.

Asset protection is used as an argument that an arrangement was not entered into with the dominant purposes of a tax benefit so not caught by Part IVA. This is an interesting twist that if the purpose of the arrangement is partly for asset protection then some of the costs are not deductible...

NIgel, The site does give the case law and legislation that support the concept and an explaination. The only incentive to buy the kit is to get a copy of my ruling from the ATO, a letter for your employer and their accountant and the form that you have to sign and put your name on to...

You need to have a look at the free publications section of www.bantacs.com.au. Enjoy all the free info you need.

Some of the quotes in the PBR re the wording of the deed: The corporate trustee has the power at any time to create capital or income units in the trust. If units have not been issued the trustee has the discretion to distribute income and capital to discretionary beneficiaries of the...

Have a look at this: http://www.ato.gov.au/rba/content.asp?doc=/rba/content/66298.htm

Wasn't that obvious to me either Ebbie. Seems strange that a solicitor would choose his words so poorly. Are you out there Chris? We wait in suspense for your next installment.

Alexlee, The franking credits have to be apportioned at the same rate the franked dividends were apportioned. But as you can now get a refund of the franking credits this should not cause you any problems. The other trust would probably have to make a family trust election. It...

Alexlee, Are your trust residents of Australia for tax purposes?

Chris, Thanks for your advice, I hope you will keep us posted. I may need the remedial version, what is a PIT? Julia (Julia)

Alexlee, Just be careful holding shares and a negatively geared property in a DT. The trust must make at least $1 in profit before it is allowed to distribute the franking credits from the shares to the beneficiaries.

GSJ, Regardless of how the capital gain is calculated if it is a gain then it is tax that would not have to be paid if the property was never transferred ie held in the high income earners name until he or she retired.

Chris, Thanks so much for being so upfront with us. I now know I can send people wanting Hybrids to you to get a straight answer. I think we all have the answer to our questions now. Talk to Chris and find out what the ATO are thinking about your particular circumstances. And if still...