Just a few questions about shares, tax and trusts. Firstly does anyone invest or trade using a family or hybrid trust. I have just started looking at such structures for our property portfolio and wondered if anyone who uses them with shares, could give some feed back on their usefulness and tax savings.
Another question is in regards to taxation and shares. It is my understanding that if you use borrowed funds you cannot claim a deduction for interest costs and other expenses, if you are an investor and not classified as a "trader". But how does one prove they are a trader? Is there some criteria you need to qualify for - eg you need to trade 'X' amount of times in a year??
Also is negative gearing only applicable if you are a trader not an investor?
If this subject has been mentioned elsewhere on the forum please don't worry as I can find it.
Looking forward to your responses,