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  • Profile photo of PosEnterprisesPosEnterprises
    Member
    @posenterprises
    Join Date: 2006
    Post Count: 290
    December 28, 2006 - 6:18 am

    Hi can anyone advise me on a couple of issues regarding Hybrid Trusts!

    I have done a lot of reading on them and still learning which is great.

    My questions though are

    If i have a IP in the Trust and i get the loan in my name does the Trust Bank account pay for the loan interest? Or do i have the rent and tax depreciation etc paid into my own account and interest for the loan gets deducted from there.

    Does that make sense.

    Also how if i get the loan in my name and then i have a Company as my Trust how do i give the money to the Trust Company to purchase my IP which will be negatively geared?

    thanks

    [suave2]

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    December 28, 2006 - 1:20 pm

    Hi Pos

    With a hybrid you will own the income producing units. The trust owns the asset and distributes the income to you so you can pay the interest on your loan. There may be a shortfall, so this can be offset against other income (negative gearing).

    You get the loan in your name, but the trust buys the property – it all happens simultaneously. Your accountant will help you with the paperwork for buying the units from your trust.

    Terryw
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

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