Does anyone know if this was passed in parliment?
Discretionary trust which purchased asset after 23/9/2001 will not benefit from the discounting of CGT, ie 50% exemption in accordance with div 115 of the tax act?
Definitely yes for companies, including company trustees, not sure for trusts.
Mel
Melanie,
what do you mean for company trustees? Should it not still fall under the trust anyway because company trustees are not the beneficial owners.
I hate this tax stuff, not sure if they passed legistlation re this.
To the best of my knowledge a trust, either discretionary or unit, still has the advantage of the 50% discount on capital items held for more than 12 months. Companies get no CGT relief ie. companies pay tax on the whole capital gain at 30%
Someone correct me if I am wrong because this is how accounting practices I have worked for are accounting for CGT in trusts!!!
Hi,
This can certainly be a complicated area – especially trusts.
Capital gains derived by a trust from a CGT event happening after 11:45amEST on 21 September 1999 may be reduced by 50%
-2002 Master Tax GuideWhat this means is that so long as the beneficiary of the Trust is an individual or a complying superannuation fund then the discount may apply.
As always, it is best to get the advice of your accountant for your specific circumstance.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Thanks for that Steve,
How can I obtain a copy of the master tax guide 2003?
Hi div43,
Try bookstores… or your local accountant.
Bye,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
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