Quick HDT Question

[Puppeteer]

The loan docs have just come through and all the loan docs are in the company name (as trustee for the trust). This deal is negatively geared (though positive cashflow with the tax offsets), so I thought that the loan docs need to be in my own name to be able to offset the interest against my income.

The borrowed money is essentially to buy units in the trust.

So the question is, which name should the loan be in, to be able to take advantage of the negative gearing?

 

[Mry]

The loan should be in your own name.

The asset is in the company name (as trustee for the trust).

Better change those docs or say goodbye to those negative gearing benefits.

 

[Puppeteer]

Thanks - am on to my broker now.

 

[redwing]

Yep Loan docs in your name..

some banks have a problem understanding the proccess,I was lucky in that my broker and the accountant who set it up new what they were doing..

The solicitors (NLS) who drew up the documenrts had to have several goes at it and tried various combinations but finally got it right..

REDWING

 

[Puppeteer]

Yeah, my broker stuggled with it a bit, but my accountant is on the ball, and sorted out my broker. It turns out that my broker has done this before, but something got lost in the communication somewhere. Hopefully they'll get it sorted now, though they do need to re-approve, apparently. Hopefully it won't take too long.