Hi All, We would like to test out a scenario to see if it is feasible and legal. Scenario: A fixed unit trust with a corporate trustee purchases an investment property, whereby Person A will own 100% of the units, will be the sole director of the corporate trustee and will also own 100% of the corporate trustee's shares. The home loan will be taken out by the trust and thus the loan name will be in the corporate trustee's name. In addition, the trust will be entitled to the entire rental income stream. Upon settlement of the property, a loan agreement will be put in place between Person A and the fixed unit trust. The trust will lend a sum (equivalent to the trust's home loan) to Person A for the purpose of acquiring additional units at an interest rate roughly equal to what the bank is charging the trust - thus creating a nil effect for the trust's home loan repayments. Since the property will be quite new, the trust will claim a significant amount of depreciation and also deduct the usual property upkeep fees (e.g. property management, water, council, strata, etc). The remaining profit/money will be distributed to Person A via his unit holdings. As a result, Person A will be claiming this "negative gearing" against his personal income. Any ideas if this is possible??