I HAVE A FAMILY DISCRETIONARY TRUST WHICH HAS OWNED A

As the discretionary trust has 11 parties as beneficiaries, the optimal way to minimise the tax payment is to distribute the income relative to the earning incomes of each beneficiary. This means the adult beneficiaries will need to consider there present taxable incomes to determine the impact level in respect to the benefit that they will receive under the trust by discretion.

You can reduce the taxable amount payable.

An accountant will be able to prepare a good spreadsheet, but the adult beneficiaries will need to be forthcoming with disclosure of their personal taxable incomes.

Would you like to consider this option.

You have a legal right to protect your interests in this important situation.

If you need any further information let me know and I will be pleased to assist.

You can come back to this post any time to ask questions and there will be no further charges to you.

Don’t forget to rate me 5 stars as this supports me helping the community, and your important questions.

Have I answered your question today ?

Please allow me a few minutes and I will address your points above.

1. Can I offset the capital losses from the capital gains?

A: Yes you can, in respect to the losses that are in the trust.

2. Can I offset the Non-recoverable loans (Non current assets) from the capital gains?

A: Yes you can, if you have proper documentation in place such as loan contracts and a history of payments as such to substantiate the same if the trust is audited.

3. Once the above two items have been offset, how and when can I offset the accumulated losses from the balance of the capital gains?

A: This occurs in the final assessment before the beneficiary amount is determined for distribution.

4. Can I distribute the balance of the net capital gain to a beneficiary company and offset against its trading losses$

5. How and when is the 50% discount applied in the above procedure?

A: Yes you can, this will require careful inter company documents being prepared, with the receiving company confirming by memorandum to ensure compliance with the ATO.

Q. point 5 - How and when is the 50% capital gain discount allowed to trusts applied in the above procedure?

A: The discount is applied in the trust after all deductions are taking into account and before distribution.