Hi everyone, I'm new to the forum but have already learned so much just by reading other investor's posts, what a terrific community of like minded investors. I have a hybrid discretionary trust (with corporate trustee) that was setup about 15 years ago. Initially we purchased a property in the trust that was then sold about 8 years later. The loan was in the trust name and no negative gearing benefit were claimed for those 8 years. We made no profit on the sale and the accumulated cash-flow loss (for those 8 years) trapped within the trust comes to about $120K. If I were to purchase a new IP under the trust but have the loan under my name (to obtain negative gearing benefits), can the trust utilise the accumulated losses from those prior years and make no income distribution on the rental income? For example, the trust buys IP for $500K with rental of $450pw, assume 25% property expenses the net rent will come to $18K. I will obtain a $500K loan under my personal name and use it to subscribe to the units allocated to me from the trust. Ignore depreciation for now ordinarily the full $18K rental income will be distributed to me as income distribution. Now because the trust has accumulated losses from earlier years can it use that to offset the rental income and thereby make no distribution? So on my personal tax return I will claim the interest associated with the $500K loan but won't receive any income (at least not until the $120K losses are "used up"). From ATO's perspective, I'm not sure if this will trigger any alarm bells as no trust distribution income is declared even though interest losses are claimed? Thanks for in advance for any thoughts shared! CE.