Trust distributions.
This episode explains how distributions from trusts (including managed funds) can affect your CGT position. Managed funds include -
- property trusts
- share trusts
- equity trusts
- growth trusts
- imputation trusts, and
- balanced trusts
Distributions from trusts can include different amounts, but only the following two types of amounts are relevant for CGT purposes:
- capital gains
- non-assessable payments
Distributions of trust capital gains are treated as capital gains that you have made.
Non-assessable payments mostly affect the cost base of units in a unit trust (including managed funds) but can in some cases create a capital gain. Non-assessable payments do not affect beneficiaries of a discretionary trust.
Trustees, including fund managers, may use different terms to describe the methods of calculation and other terms used in this guide. For example, they may use the term ‘non-discount gains’ when they refer to capital gains worked out using the indexation and ‘other’ methods.
Investments in shares and units.
This section explains your CGT obligations if you sold or otherwise disposed of any shares or units in a unit trust (including a managed fund) in the 2008–09 income year. It also explains what happens when you have a CGT event under a demerger. For information about distributions from a unit trust (other than under a demerger) in the 2008–09 income year, contact Taxwise on 9248 8124.
Managed fund.
A managed fund is a unit trust. Where we refer to a unit trust, we are also referring to a managed fund.
Tomorrows Episode……. Forestry Managed Investment Scheme Interests and Real Estate and Main Residence.
About the Author
Warren Kruger is an Australian Tax Specialist and Advisor.
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Warren Kruger is an Australian Tax Specialist and Advisor. For a FREE Report “7 Essential Strategies to Reduce Your Taxation NOW!”,enter your name and email address in the Opt In Box located on the top right hand side of this article.