I have just been reading in the current edition of Australian Property Investor about a taxpayer alert from the ATO with relation to Hybrid Trusts.
The alert focuses on the tax deductibility of interest on borrower finds used to subscribe to income units in a hybrid trust. It seems the ATO is investigating if the ability to redirect the income from the trust to a low income earner while the interest is still being claimed as a tax deduction by another beneficiary.
Does anyone here use a Hybrid Trust, either for shares or property? and do you believe this will affect you?
Curious as I have thought or creating a trust when I but an investment property and could potentially use the same trust for share purchases in the future.