Mry,
In your experience, how long does it take for the PBR to come through?
In your experience, how long does it take for the PBR to come through?
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Personally I'd prefer to see it as an interest only loan, and agree with GSJ that most people would probably be doing it that way.Mry,
What about making it for an interest only loan? Will that help the case or hinder it? It will become positively geared sooner wouldn't it, and many investors would do this anyway as it makes more commercial sense?
GSJ
mry. why no go ahead. u say based on advice received. did u speak to ato or someone who say maybe hybrid ok. seem strange u all systems go one minute and suddenly halt the next. would like to be fly to hear who u talk to.
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.
Jus a question; how binding is a PBR...?
I'm glad i'm not an accountant....my hea would explode !!
Sometimes, I wonder about the sanity of that statement, compared to the sanity of my career choice...
Cheers
James.
Lisa
i seriously suggest you sit down with your accountant and discuss the entire situation and outcome of HDT. Your investment in a HDT isnt just about saving you tax today, but setting your investing life up for tommorrow. The only way you are truly going to learn all about HDT is to sit down with a professional and let them go through all the pro's and con's of setting up one of these trusts, not only that but each individual has there own wants needs and outcomes with what they are looking for in investments.
Sharon
Yeah I hate accounting and tax fundamentals and business ethics also, they have no place in the modern profession.Practical knowledge is worth much, much more than the theoritcal crap that they teach at university.
Fair enough, but surely with such little formal education and experience there is the humility (or even common sense?) to admit that perhaps people with much more experience and education dont just pull things out of their proverbials, but may actually be coming from a more learned point of view than you are?Julia, I have readily admitted - and will continue to do so - that I am not university qualified, not a tax agent, nor have as much experience as other accountants on this forum. However, most do not hold this against me as I still understand how things work, and why.
I would suggest to all those who continue to debate the HDT proponents to just let them go - you will never argue or debate someone around whose mind is already made up.
Fair enough, but surely with such little formal education and experience there is the humility (or even common sense?) to admit that perhaps people with much more experience and education dont just pull things out of their proverbials, but may actually be coming from a more learned point of view than you are?
I have never heard about accounting prodigies - it is one of those professions where your value comes purely from experience and your practical application of that experience, not some sort of innate talent.
As such it is probably an idea to perhaps ponder the possibility experience may give a more wise and insightful point of view than brash confidence.
Hi there Sharon,
Welcome to Somersoft!
Good to have another accountant on board, and presumably another supporter of the HDT...?
Do you use MGS deeds and do you have any thoughts on calculating redemption price of special income units?
Do you have any thoughts on the PIT?
GSJ
How can you support it yet the sticking point of the whole debate is "up in the air"??Thoughts on the calculation of the redemption price huh.... well that one is still up in the air as far as I am concerned;
Come on, at least be honest - the whole point of the HDT is to negatively gear in one persons name then shift any positive gearing into another persons name while avoiding the capital gain implications. Dont run the "asset protection" rubbish! There are far easier and simpler ways to achieve asset protection than this borderline (at best) method.but after saying that let’s face it the HDT isn’t just for Negative Gearing, it’s also for the asset protection of your investment
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?"While PBR's are a way of ratifying your strategy there simply never will be a right or wrong answer here.
Either HDT users who negative gear are sitting on a potential time bomb or they are far ahead of the tax office on this one. My clients deserve to know what they are sitting on.I'd say you're probably all right to some extent. Depending on the user, the day of week and the phase of the moon.
...when you don't know what you are doing.Taxation is a grey area.
Wrong. When PBRs come back and state that the HDT does not work (66298), we get the "Oh, but that was an inferior deed so of course it doesn't work", then we have discussions on the relative merits of the deed itself.Arguing on product releases is futile.
Its the other way around. We show a lack of respect to our clients when we allow people to make unsupported claims without pointing out the faults and trouble areas. For example, when Henry Kaye part 2 comes around to my clients, you can bet I'll be warning them because I "desire to advise and protect them", which is an active response, not a passive response.If anything this thread shows a lack of respect for your collective clients rather than a desire to advise and protect them (which IS your job).