Search results

good point

in that case, you're probably correct in your adjustment of the split, as effectively the units own proportionally fewer of the income producing assets. although whether or not you can do a zero interest loan (for tax purposes) is probably another question ....

i would guess it would depend how you treated the unit holder portion of that reinvestment - ie $5k ... did the unit holder use the 5K to either a) buy more units, b) loan the $5k to the trust or c) gift 5k to the trust so that if you used a gift, then yes that would increase the proportion...

actually i think i may be suffering from a bit of brain fade ... and havent put quite enough thought into it .. although i was hoping a text book or newsletter or article would give me the journal entries in practice ... on thinking about it a bit more, the market value of the units for the...

so if the redemption is valued at greater than cost, you will pay capital gains tax individually, and then when the asset is later sold by the trust, capital gains tax will be paid again on the distribution of the gain? argh .. i might have to look at gettin all my assets out of the HDT...

this is basically the question i am asking .. as i obviously dont want to pay CG twice! and to be conservative i will most likely value units at market value rather than cost.

umm still curious as to the answer to this question? accounting for the hdt would be DR units 100,000 CR bank 150,000 ... DR somethin?? 50,000 .. what is the something?

umm hopefully a quick somewhat related question ... how does the HDT treat the purchase of the units back from the unit holder? assuming that your HDT has experienced capital growth (unrealised), and say your units which you purchased for $100,000 now have a market value of $150,000. Now...

i suspect this would be pushing it - given as discussed earlier by Dale, capital gains are still 'income' to the unit holder if they are realised. In your example you are saying you are distributing income from an unrealised capital gain (on an asset purchased through a unit holders...