Hart: the death of tax planning?

Dabner, Justin, and Burton, Mark (2004) Hart: the death of tax planning? CCH Tax Week, 24 June 2004 (24). pp. 1-5.

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[Extract] The facts of FC of T v Hart [2004] HCA 26 are well-known. The taxpayers took out a wealth optimiser split loan product to enable them to purchase a home and retain their former residence as an investment property. The product was structured such that, in the early years of the loan, all repayments were directed towards paying off the home loan while allowing the interest on the investment property loan to be capitalised (and compound interest imposed). In essence, the progressive shift of the loan balance from the residential side of the account to the investment side permitted interest on the loan funds used to purchase the Hart's home to be claimed as a tax deduction.

Item ID: 35314
Item Type: Article (Commentary)
ISSN: 1320-9426
Date Deposited: 03 Feb 2017 02:29
FoR Codes: 18 LAW AND LEGAL STUDIES > 1801 Law > 180125 Taxation Law @ 100%
SEO Codes: 97 EXPANDING KNOWLEDGE > 970118 Expanding Knowledge in Law and Legal Studies @ 100%
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