Recent content by Gogo72

cheers blue card. price is out of my league though. its a good area.

who's the agent?

Yes it is right, but my original question still stands. The ATO has told me that the trustee should pay the tax on the $2,667 and the beneficiary minor needs to lodge a tax return on the $2667 and include the tax credit paid by the trustee. The overall effect is NIL tax, but it is a...

unfortunately its correct. kids need to lodge a tax return if the trustee is assessed under s 98(1) when a distribution is made to minor. in practise though, i dont think the ato will issue such a notice of assessment to the trustee.

i have been told that the minor must apply for a tax file number and lodge a tax return to receive the credit of tax paid by the trustee for the same income. It seems a very long winded method - is there any Tax Statements that anyone knows of which says this can be avoided or must I now...

Just got off the phone from ATO and they said if a discretioanry trust distributes $2667 to a beneficiary (under 18 - minor) and has no other income, the beneficiary is not liable to pay tax due to the low income rebate. However, the trustee is liable to pay the tax above $416 under section...

Hi, Does anyone know the journal entry for franking credits received by a discretionary trust (or anything when there is a difference between accounting profit and taxable income)? DR ?? CR Franking Credits (P&L) Cheers GG.

Thats what he said. I did actually question him as it didnt sound right. but thanks, ure's case is pretty clear its restricted to 1% in my example. so i suppose an interest free loan is OK but there is no tax deduction!

my accountant says that the "link" is the loan at 1%. That is, I will receive interest income at 1% from the trust by way of loan agreement. I have a separate loan to the bank paying market rate. So this differential is the negative gear aspect. Is lending interest free to a trust and the...

Hi all, Is it possible to lend money to a trust interest free, then get that trust to invest in a term deposit payign interest and stream that income to other family members? If so, how would this be different if I borrow money from a bank at say 6%, onlend to the trust at say 1% thereby...

let me clear, the appointors are two brothers and a mother. if the mother dies, it is likely the two sons will be the legal representative, so as they are already appointors, the number of appointors will reduce from three to two. in this instance, is this a resettlement of trust?

thanks raddles. the appointor doesnt have a substitute, the trust deed just refers the appointor becomes their legal representative which is likely to be one of the two existing appointors. so in effect, three appointors will become two (with no replacement). does this change things?

Hi, if there are say three appointors in a family trust and one dies, does this constitute a resettlement of the trust? If so, is the whole trust assets subject to CGT or a third of the value subject to CGT?

Is my understanding correct in relation to non-resident trusts? 1. When return to Australia (originally from Australia) and become a resident again, trust assets don't trigger a CGT event if they are taxable Australian assets (i.e. property based in Australia)? 2. Whilst it remains a...

Hi all, I am in the process of transferring by way of gifting 2 investment properties (basically neutral cashflow) to a family trust with corporate trustee. In order to protect as best as possible the "alter ego" argument and avoiding the route of appointing an external independent person...