Will this work ?

Situation as below ;

Spouse A tax position 47% incl. Medicare. Company director.
Spouse B tax position negligible due to max salary sacrifice and franking credit recipient, No risk individual.

The plan is to acquire Negatively geared CG assets in Spouse A's name. Over time, equity to be released from these CG assets and loaned / gifted to family trust. The idea behind this is to maximise deductibility and reduce asset risk exposure over time. Obviously this wont take all asset risk off the table, but if equity exposure is reduced by 50-70% then that is acceptable given the negative gearing benefits. Appreciate comments guys, and any other ideas for this type of situation :)
 
If spouse a is earning over 180k a year I'd suggest using that to pay for some specific advice.

Buying a property with the prime intention to negatively gear it is, in the majority of instances, a terrible idea. Tax savings should be a bonus or a minor consideration not a major one
 
If borrowing to gift then the interest would not be deductible.

If borrowing to lend to the trust the interest may be deductible, depending on the terms, but the money will still be an asset of the lender (husband).

What about the husband gifting his savings to the trust and then borrowing it back to use for property. Trustee may be able to lodge a mortgage. - Seek legal advice before trying.
 
Well would just carry forwarded losses.....no biggy.

And that's not the kind of risk I'm talking about.

Anyway /thread. Thanks all.
 
Hi Erko,

What is negativing gearing got stripped or concessions was cut?

I cant see this ever happening. Any changes to negative gearing would most likely only apply to new purchases with existing arrangements remaining under current rules.
 
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