Trusts and Distriubuting Captial Gains Tax Free?

Re: Re: Re: Trusts and Distriubuting Captial Gains - Tax Free?

Originally posted by DaleGG
Hi

No, not really. In your example, the trust would need to distribute the $100k income to the beneficiaries and they will need to pay tax on that income. However, the 2nd $100 K unrealised capital gain can be distributed to the beneficiaries free of tax implications until the property is actually sold.

Dale

Hi Dale is there a way of transfering income into unrealised capital gain to be distributed with out the tax implications and the need for an outside loan?

bundy :confused:
 
Re: Re: Re: Re: Trusts and Distriubuting Captial Gains - Tax Free?

Originally posted by bundy1964
Hi Dale is there a way of transfering income into unrealised capital gain to be distributed with out the tax implications and the need for an outside loan?

bundy :confused:

HI

Off the top of my head, No. Sorry.

Dale
 
Hi everyone

Other than CGT implications, are there any other tax implications that arise when the property is sold??

Also, would I be right in saying that if you never sell the property (or properties) and you access the capital appreciation in this way a number of times over a number of years, then there are no tax implications........ever??

eg. say you own a property for 15 years. At year 5 you distribute an unrealised capital gain (UCG) of $50000. At year 10 you distribute another UCG of $30000, and at year 15 you again distribute a third UCG of $60000. Providing the UCG's are distributed in the manner described above, if you never sell the property you are never taxed on any of the $140000 distributed as UCG?? Or can you only do it once??

Lastly, say in the above scenario, you sold the property at year 20, what would be the tax implications of that??

Thanks

Paul

PS. Is the above a very realistic scenario??
 
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