I have been tossing up whether to setup a trust or just buy my first IP in my name.

I was interested in a trust soley for the asset protection.

However the problem arises where the IP is slightly negatively geared. To make +ve cash flow I would need to claim depreciation. This works fine if I own the IP in my name as the depreciation comes off my personal tax. The problem arises, from my understanding when losses (depreciation) can't flow out of the trust to offset my personal income tax.

I believe buying IP's in trusts may have worked for others in the past as the IP wass making money off the bat, hence the trust payed tax and then depreciation could be claimed against this within the trust.

The question is, how do I buy IP's in a trust that and make use of the depreciation?

Guy