Help with setting up Trust – new PI

I have found my first deal and need to setup my structure (really excited!)

I have read a few resources (Wealth Guardian) and talked to an accountant but still find myself
really confused as to what would be the best structure for asset protection and tax minimisation.

Here are my circumstances:

• Investing with a business partner. He has a successful business with the income of the business flowing into his unit trust.
• I have a normal job ($50K pa) and pay PAYG tax.
• The property we have found is slightly pre tax cash flow -ve (ie after rental returns and interest payments etc it is slightly negative). Post tax it is slightly cash flow +ve (ie when you consider depreciation of building and the offset to our taxable incomes).

Our accountant has advised that the best way to set it up is to have a partnership between me (as an Individual) and my business partner's trust. I think he suggested this to allow me to be able to use the offset on my taxable income and thus be cash flow +ve and my business partner can use the offset on the taxable income in his trust.

I know this isn't the best for asset protection though as the property is owned in my name, not to mention the complications that could arise due to the partnership.

From my reading I would have thought that a discretionary trust would have been the way to go as this would have protected the asset although I don't think we could make the deal cash flow positive as the trust would have no taxable income to claim the offset?

Do discretionary trsuts only work for +ve cash flow properties?

Any advise/suggestions would be greatly appreciated as I am just starting out.

Cheers,

Guy