YAHTQ - Yet another hybrid trust question!

[djsherly]

If your PPOR is held by a hybrid trust (along with another investment property), and you have bought units in the trust, can your interest payments be tax deductible if market rent is being paid the trust?

Does the answer to this question differ if:

a) the units are secured against the PPOR, or

b) the units are secured against some other property held by the trust.

I recall a unit trust ATO case along similar line to scenario a, but without the other investment property, which the answer was pretty much 'no', but does scenario b change the equation any?

Chris.

 

[NickM]

CHris you are correct the ATO rulings address unit trusts.

Originally posted by djsherly
If your PPOR is held by a hybrid trust (along with another investment property), and you have bought units in the trust, can your interest payments be tax deductible if market rent is being paid the trust?

Does the answer to this question differ if:

a) the units are secured against the PPOR, or

b) the units are secured against some other property held by the trust.

Chris.

Providing the rent was market, the interest would be deductible. However, the negatives are no PPOR exemptions and land tax in NSW.