Hybrid Trust

Can anybody tell me;

If I sell my ppor to a hybrid trust and then I decide to rent a house somewhere else for myself.

Would I be able to claim the rent I pay as an expense? and how much?

or

Would anyone have a good link showing me the benefits of a HDT in this situation?

I am pretty sure this would have been covered before so I do apologise but this computer is so slow, searching is taking for ages!

 

I would think twice about what you want to do.

Ask yourself - what am I trying to accomplish? To get a tax deduction for the interest on the morgaged PPOR? as against stamp duty costs & loss of CGT exemption from thereon.

The rent you pay is not tax deductable as it is a private expense.

This article by the NTAA, allbeit for professional accountants, is a very good essay on the use of Hybrid trusts for tax planning purposes.

National Tax & Accountants' Association - Your Association at Work - Using hybrid trusts - advanced tax planning ..and click on the PDF link.

I wouldn't use hybrid trusts myself, as the ATO don't like them IF THERE IS ANY DISCRETIONARY ASPECT to them at all.

If you must - then first get an ATO private ruling on the setup.

 

Don't forget Land Tax aswell.