Published on 10 Jul 2008
| Took place at Kooyong Tennis Club, Melbourne
The use of trusts for active enterprises and passive activities continues to grow.
Unfortunately, too many advisors recommend trusts to achieve a taxation outcome
without a proper understanding of the rules relating to their use.
how is income and capital gains dealt with by the trust?
how do you extract value from the trust?
is it possible that you might have a trust without realising it?
is it necessary to make a family trust election?
when should or shouldn't it be made?
At this event, Eugene Berkovic looked at all of the relevant issues relating to trusts -
both from a legal and practical accounting view.
Trusts - The final frontier
Author(s): Eugene BERKOVIC
This paper covers:
Tax treatments of trusts
practical treatment - trustee or trust registered for TFN, ABN etc
flow through of tax attributes
treatment of losses / imputation credits
Issues to consider when reviewing family trust deed
powers of trustee
"net income" definition
distribution of corpus
role of appointor
classifying beneficiaries - what is the range of potential beneficiaries?
Current tax issues involving trusts
application of Division 7A
trust loss rules - need to elect to be a family trust / nomination of test person/family trust distribution tax
CGT on disposal of assets, including small business concessions and distribution requirements to satisfy small business CGT conditions
"grouping" requirements under small business CGT net asset value test
succession planning issues
proportionate v quantum approach
resettlement of trusts
in specie distributions - stamp duty exemption
separation of capital and income entitlements under hybrid trusts.