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I was hoping you'd be the man to reply Terry. I've read your advice in other similar posts but couldn't quite find the precise answer on some of my queries.
Good to know that we can claim interest on the borrowings that we will then onlend to the trust.
Yes I thought I would get a loan document put in place as you advise. Its seems best to do the loan rather than the gift because at least you have the interest losses building up in the trust even if you can't use them immediately.
I"m pretty sure that we could use the trust to buy a few shares whose gains could be used to use up the interest expense.
My wife will be happy now that I'm finally decided on which way to go.
Thanks again.
I didn't go ahead and do it but a partner of a reasonable size accounting firm (in Victoria though) advised me that I could do it. He said it was a little risky though. The anti avoidance provisions are a bit of a catch all and might be involked re this.
Surely the ATO have seen this scenario before I figured. It just seems a bit too easy. Everyone would be doing it if it had no risk.
