Captial Gain Tax in Unit Trust

qianshao_13

i have one question regarding CGT under Trust.

there is only one property under this unit trust. we sold it last year and have Capital Gain.

As the trust is unit trust, the capital gain is distributed to each beneficiary based on the fixed entitlement.

shall I just input net capital gain in item F in the statement of distribution as per the fixed entitlement of beneficiary? (all beneficiaries are over 18, not in legal disability and not non-resident)

my question is "what is called specifically entitled" as below. is my situation related to below? can I interpret that the benefits not distributed as per fixed entitlement. Trustee purposely distribute extra benefit to certain person or beneficiary? so it is called "specifically entitled". is this correct?


"The non-primary production income amount shown at B will need to be worked out differently if the trust:
is a relevant trust with capital gains or franked distributions that any beneficiary (or the trustee) is specifically entitled to in full or in part, or
is a managed investment trust (MIT) that has not elected to apply the new streaming provisions."


big thanks

jeff_lawsons

That's trust income streaming for franked distributions and capital gain.

Refer to the ATO link below for more info about trust income streaming:

https://www.ato.gov.au/General/T ... nked-distributions/

The trust rules contain some streaming provisions which allow a trustee to stream franked dividends and/or capital gains to specific beneficiaries if certain conditions are met.

In order for streaming to be effective for tax purposes the trustee must have the power to stream particular classes of income under the terms of the trust deed or through the general operation of trust law. If the trustee does not have the power to stream income for trust law purposes then any attempts to stream income from a tax perspective will not be effective.