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bigduckontax
bigduckontax, Accountant
Category: UK Tax
Satisfied Customers: 3822
Experience:  FCCA FCMA CGMA ACIS
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The case is as follows: a family trust realised loss of $50K

Customer Question

Hi there, the case is as follows: a family trust realised loss of $50K for the financial year, it has also realised net capital gain of $10K. The trust has made payments to beneficiaries during the year some $40K. The trustee (under the deed) has full
discretion to advance any amounts out of the trust fund, before the trust is vested. The ATO says that the financial result for the year is the tax loss of $40K ($50-$10), this loss to be carried forward, and there are no distributions allowed to be made to
beneficiaries. How is the money already paid to beneficiaries recorded in the books? And what are the tax consequences for the beneficiaries? The ATO refers to the CGT event E7, however, I am not sure that E7 is applicable in that case.
Submitted: 1 year ago.
Category: UK Tax
Expert:  bigduckontax replied 1 year ago.

Please be so kind as to advise what ATO means. The normal usage of these letters is The Australian Tax Office.

Customer: replied 1 year ago.
Australian Taxation Office
Expert:  bigduckontax replied 1 year ago.
I must opt out, details of Australian tax are outside my sphere of knowledge.
Customer: replied 1 year ago.
No worries.
Expert:  bigduckontax replied 1 year ago.

Post to clear my question list.