Negative gearing through HDT

Discussion in 'Accounting & Tax' started by MiddleClassMonkey, 10th Aug, 2007.

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  1. MiddleClassMonkey

    MiddleClassMonkey Well-Known Member

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    Sydney, NSW
    I understand the concept of neg gearing through HDT (that is, buying units individually, then HDT buying the actual property).

    My question is, can depreciation (that is, a paper 'cost') of a HDT-owned property also be passed onto its unit-holding beneficiary?

    MCM
     
    MiddleClassMonkey, 10th Aug, 2007
    #1
  2. artgul

    artgul Well-Known Member

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    Sydney
    Hi MCM,

    I belive that the answer to your question and more can be found in the August issue of the API magazine. Look for the article written by Dale under the tax section.

    In short, I'd say that the answer to your question would depend on your HDT deed :cool:

    Rgds,
    artgul
     
    artgul, 10th Aug, 2007
    #2
  3. Rob G

    Rob G Well-Known Member

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    Location:
    Melbourne
    If the Trustee is the holder or owner of the asset then normally they would be entitled to the depreciation deductions.

    But you may have a gift & loan-back arrangement for some reason where the beneficiary is the owner but the the Trustee has security over the asset.

    Need to check the terms ...

    Cheers,

    Rob
     
    Rob G, 11th Aug, 2007
    #3