Hi
I'm aware that if you borrow money to buy units in a hybrid trust, you can claim the interest as a personal tax deduction. I'm assuming that this is the same as a Unit Trust, in that the Hybrid Trust is operating as a Unit Trust if there are units outstanding.
My question is this:
The trust bought a property, and borrowed the money itself. The loss is therefore within the trust.
Is there any way that I can borrow the money myself to pay out the loan the trust has and turn the loss into one I can claim on my tax return? It's a loss of nearly $50K per year, and I thought that it would be better in my tax return now rather than waiting for the trust to ever make that kind of money.
I can't think of how to do it, but was wondering if anybody else knew a completely legal, cost effective way to do so.
Thanks in advance.
I'm aware that if you borrow money to buy units in a hybrid trust, you can claim the interest as a personal tax deduction. I'm assuming that this is the same as a Unit Trust, in that the Hybrid Trust is operating as a Unit Trust if there are units outstanding.
My question is this:
The trust bought a property, and borrowed the money itself. The loss is therefore within the trust.
Is there any way that I can borrow the money myself to pay out the loan the trust has and turn the loss into one I can claim on my tax return? It's a loss of nearly $50K per year, and I thought that it would be better in my tax return now rather than waiting for the trust to ever make that kind of money.
I can't think of how to do it, but was wondering if anybody else knew a completely legal, cost effective way to do so.
Thanks in advance.