Accountants Clarification...
Very sorry, but I'm not really getting my head around this one.
Using this example quoted above from Alex, as it is easier for me to understand this way - do Dale or any other accountants or lawyers or anyone else on this forum believe that:
(1) The unitholder gets distributed 100K CG (so 50k in his tax return, after the 50% CG discount), and the other 100k CG gets distributed amongst other beneficiaries.
OR
(2) The unitholder gets distributed the whole 200k CG (so 100k in his tax return, after the 50% CG discount).
OR
(3) The whole 200k CG can be distributed amongst beneficiaries (does not have to be distributed to the unitholder, and each beneficiary gets a 50% CG discount on the CG distributed to them).
Thanks for the clarification.
My understanding has been that option number (1) is how it works??? - and am not sure what issue 'Ronin' from the other HDT thread had here, if there are at least some CG that are distributed to the unitholder, even though it may proportionately decrease over time...???
GSJ
If this is the case, then say you buy units for $200k. In 10 years the property goes to $400k. Trust sells, taxable CG $200k. The income units represent 50% of the trust assets, so the unitholder gets 100k in CG (puts $50k on his tax return). The other $100k can be distributed to other beneficiaries.
Very sorry, but I'm not really getting my head around this one.
Using this example quoted above from Alex, as it is easier for me to understand this way - do Dale or any other accountants or lawyers or anyone else on this forum believe that:
(1) The unitholder gets distributed 100K CG (so 50k in his tax return, after the 50% CG discount), and the other 100k CG gets distributed amongst other beneficiaries.
OR
(2) The unitholder gets distributed the whole 200k CG (so 100k in his tax return, after the 50% CG discount).
OR
(3) The whole 200k CG can be distributed amongst beneficiaries (does not have to be distributed to the unitholder, and each beneficiary gets a 50% CG discount on the CG distributed to them).
Thanks for the clarification.
My understanding has been that option number (1) is how it works??? - and am not sure what issue 'Ronin' from the other HDT thread had here, if there are at least some CG that are distributed to the unitholder, even though it may proportionately decrease over time...???
GSJ
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