I’m new to the forum as having just finished Steve’s book. I read in a magazine, but lost it later about people who neg gear their own homes thru trusts. Apparently there are other ways you can do it besides thru a trust. Would anyone like to comment?????
Bobby
Hi Bobby,
What happens through a trust, which owns your own home, is very much the same as paying rent to someone else, yet you still have to fit the bill of paying the difference owed. Problem is, depending on which trust set up you do, you might find it much harder to set up a negative geared property in a family discretionary trust, as a family descretionary trust can only carry losses forward, as were a hybrid trust can allow you to distrube losses into benefits.
Cheers,
sisBobby, you’ll also find that the ATO take a dim view of a unit trust (with units owned by you) making a loss and then distributing that loss to you if you are renting the said property.
Definitely speak to a tax accountant.
Cheers
Mel
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