Hello all, Hoping you can offer some helpful suggestions on structuring my property investments. I currently own a single IP (IP1) that has no debt, approx., 600k equity with around 20k positive cash flow per annum and is held under my own name. I rent my home so no PPOR in the equation. I'm wondering if it's possible to strategically move this equity into a family trust; say, buy IP2 and IP3 under the trust, using equity from IP1, and attaching the majority of the debt (that comes about through acquiring IP2 and IP3) to IP1/me, thus claim the interest while protecting the equity. As a side bonus, as the equity will be loaned to the trust the positive cash flow from IP2 and IP3 would be a loan repayment rather than a trust distribution, possibly providing additional tax benefits. Obviously I'll seek prof. advice before proceeding however interested to hear of any opinions on whether this strategy would be viable. Thanks. Lewis
Clever. But thats not how deductions and trust income works. probably not. What you should have done is have an offset against the ip. That would be diferent. why do you even have a fully paid off ip anyway? Did it used to be ppor?
If / when you get your next ppor, consider an offset. This pay off your debt asap thing is a newbie trap.
So you would take out a loan in your personal name and onlend to a trust ? Income in your name from onlent funds less interest expenses. Net tax benefit nil. The trust will then have interest deductions which will create a carried forward loss if negatively geared Cant see how this will help you from a tax perspective
