Hypothetical case,
If a discretionary trust with a corporate trustee has say 4 properties with loans, ignoring any other income.
At some point in the future if it sold one property and say made a capital gain of $100,000.
If it pays that $100,000 off its other loans so there is no distribution at the end of the year, is there any tax payable?
Does the capital gain have to be passed to the benificiaries or is it that there is no distribution so no tax payable.
Thanks,
Kim
If a discretionary trust with a corporate trustee has say 4 properties with loans, ignoring any other income.
At some point in the future if it sold one property and say made a capital gain of $100,000.
If it pays that $100,000 off its other loans so there is no distribution at the end of the year, is there any tax payable?
Does the capital gain have to be passed to the benificiaries or is it that there is no distribution so no tax payable.
Thanks,
Kim