I'm wondering how a Hybrid Trust or Family Trust would be able to get negative gearing deductions as per this link: http://www.taxintelligence.com.au/propertyinvestor.html
I was under the impression that Hybrid Trusts & Family Trusts can't get negative gearing deductions & any losses would accumulate in the trust.
Apparently they have a "unique Tax Intelligence™ trick" so you can get a deduction. Does this sound possible what they are saying?
Isn't a Family Trust the same as a Discretionary Trust, but only has family members in the trust?
Hybrid trusts are the "in thing" at the moment.
The idea is this. One problem with buying a property in a family trust is that you usually can't claim your negative gearing deductions (I say usually because there is a unique Tax Intelligence™ trick that we use, that is perfectly legal, that may be able to get you your negative gearing deductions, depending on your situation.)
Many accountants say to solve this problem, you just buy your property in a hybrid trust. In a hybrid trust, you do not own the property, you only control it (giving you asset protection), and you are entitled to get all the income from the property.
In effect, what happens is you end up claiming your negative gearing deductions.
We can tell you for a fact that if most hybrid trusts were audited by the Tax Office, they wouldn't have a hope in hell of standing up. They would be struck out as a tax avoidance scheme. (Not ALL hybrid trusts would have this problem, but many of them would ..)
You could be the next tale of woe in the Financial Review .
If you have a hybrid trust, come and see us, and we will tell you if you have a problem.
I was under the impression that Hybrid Trusts & Family Trusts can't get negative gearing deductions & any losses would accumulate in the trust.
Apparently they have a "unique Tax Intelligence™ trick" so you can get a deduction. Does this sound possible what they are saying?
Isn't a Family Trust the same as a Discretionary Trust, but only has family members in the trust?