The best of both worlds

I was talking to somebody the other day who mentioned the following scenario:

Married couple, husband earns good dollars, wife has no income. They buy a negatively geared property in a HDT, a loan is taken out to buy units in the trust the normal way. However, instead of the husband taking out the loan (because he has the higher income), the loan is taken out as tennants-in-common. Apparently by doing this there is a way to legally claim the majority (or all) of the interest deductions on the husband’s tax bracket, and yet claim a disproportionate amount of the income after depreciations and expenses (perhaps all of it) on the wife’s tax bracket.

This concept was supposedly presented by a representative of an accounting firm specialising in the use of HDTs.

I’m sure I’ll get some interesting comments from this…