Terry,

Sorry for slow reply I was interstate trying to source an IP. No luck yet but I know I’m getting closer.
Your last reply makes complete sense. I’d actually sorted it in my head from one of Elkas posts.
For some crazy reason I was thinking of the depreciation as an expense ie. money I had to come up with. Of course this was stupid and may be a factor of being on night shift. You last example explains it well so cheers.

Elka if you still read this late post then thanks for the tip on the Hybrids.
I did a lot of research into the structure I wanted earlier this year and decided that the simple discresionary may benefit me longer term. I dont intend to buy anything too heavily geared in the negative and I figure that long term complete discresion over profit distribution throughout a large extended family will have the largest tax breaks. i may be wrong but for the style of IP’s I’ll be after I think its the best and easiest.
Hybrids look nice yes but unless some fo the IP’s are heavily negative then I didnt see the benefit.

Thanks to you both
Groages