CGT and trusts

if the capital Gains goes back into the Trust,
The Trust does not pay any CGT tax. You pay the Tax when you transfer the money to yourself for personal use as the beneficiary. Depending on how much you transfer, the Tax rate is thus calculated.

Kind Regards,
George.

I’ve found a way to help you save and earn whilst not selling or delivering any product. If interested, drop me an email or PM me to find out how

From my understanding Leigh, you can keep the CGT and any otrher moneys in the Trust for as long as you want – you don’t have to distribute it to the B’s just because its a financial year.

Its like a Trust fund for a child – its there till they reach 18 years – they can’t touch it beforehand.

regards,
George.

I’ve found a way to help you save and earn whilst not selling or delivering any product. If interested, drop me an email or PM me to find out how

I am not sure but I have a feeling that undistributed profits are taxed at the top marginal rate. ask a tax accountant or check out http://www.ato.gov.au

John – 0419 198 856

Absolutely right Terry,
you can’t avoid the ATO by ‘leaving the money in the trust’ they will just tax the trustees on it anyway and at the top tax rate as Terry has said.

I suggest get some sound advice to suit your individual circumstances as many of our circumstances here on the forum will be different to yours as well.

Cheers
CD

CastleDreamer
“+CF properties in NZ available now”

hi Westan

It might actually be better to distribute the money to yourself and then make a donation to charity – remember you can only claim a deduction to a registered charity. This is because you may have a higher tax rate than the average tax that is paid by the trust.

Terryw
Discover Home Loans
North Sydney
[email protected]

Westan

Good point. I just checked one of my trust deeds and it has any charity as being a beneficiary and it classes a charity broadly including any church, religious institution etc. So even if it is not a registered charity, it can still be a beneficiary.

Terryw
Discover Home Loans
North Sydney
[email protected]

Hi Geo

it should be standard in trust documents to mention donations to charities etc, it doesn’t need to specifically mention the charity.

regards westan

I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database

yes, as an interesting strategy you could register your own church and effectively use it as a super/savings fund that you can get immediate benefits from rather than waiting till 65 (whilst promoting whatver it is you believe in). the ‘church’ could own a land holding, art,gold etc. if you aren’t ‘religious’ in the biblical sense you could set up a representation of the Agnostic Church, so everyone could benefit from this. Does anyone know how hard it is to register a charity or how you do it?

John – 0419 198 856

Ausprop

Good idea. I beleive that you can find all of this sort of information ont he ATO site. The rules have tightened considerably in recent years, but it is very easy to set up a religious association – which could be classed as a charity under most trust deeds. But these would jsut be companies and would have to pay 30% tax unless they get the tax exemption which is separate.

I think I read somewhere that sanitarium was a registered religious charity, but kellogs weren’t (incidently, both were started by fundamentalist christians) and therefore they did not have to pay tax. kellogs were saying it was an unfair advantage.

Terryw
Discover Home Loans
North Sydney
[email protected]