I set up HDT through an accountant after numerous email conversations with him and from reading posts in this forum. Just to cut it short, he had reassured me that the property asset is protected if I use HDT to purchase the investment property. I could also negative gear it at the same time. Being reassured, I finally setup the HDT through him and bought a property in the name of HDT. I was planning to add two more properties into the trust. After hearing his retirement, I decided to visit this forum for further update. There were various threads that sounds an alarm of the validity of this HDT structure.
I recently consulted one of his associate. I have learnt that the ATO has put a stop to the asset protection. ATO argued the unit holder must be the legal owner of the asset at market value in order for it to be negatively gear. This means the asset is subject to the possible future legal action. I don't know what to do now since keeping it running as it is will attract administration fees on a yearly basis with little benefit.
What should I do? I need an answer fast as I have two properties near its settlement date.
I recently consulted one of his associate. I have learnt that the ATO has put a stop to the asset protection. ATO argued the unit holder must be the legal owner of the asset at market value in order for it to be negatively gear. This means the asset is subject to the possible future legal action. I don't know what to do now since keeping it running as it is will attract administration fees on a yearly basis with little benefit.
What should I do? I need an answer fast as I have two properties near its settlement date.