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Ok thanks for that – I think getting it now. Us two ‘bread winners’ would buy the units and claim the interest on the loans as a deduction. Assuming we have all four of us as beneficiaries, I assume the rental income the property generates has to be apportioned in some way and appear on our personal tax returns?
When I explained this to my accountant, his arguement was that if I was not planning to earn an income from the loan, the interest was not deductible.It would be cashflow negative. The trustee would possibly be me but am not sure of the importance of the role. I thought all four of us would be beneficiaries and unit holders. My understanding of the trust is that the income can be apportioned however we like i.e. to our partners.
I dont understand the question about how the gearing is going to be passed sorry.
One other question regarding the loan as well – Leigh K any more info would be great. Would both couples in our case get a loan to buy units in the trust or does the bank require a mortgage over a title?
