Practitioner EditionPractitioner Edition: End of Year processing

11.3.1.4 Year End Processing: Calculate Tax – Trust Distributions Example 3

A Platinum International Brands Fund C Class tax statement appears simple to interpret, but presents an unexpected challenge. The statement is presented on page 3 in summary form for Individual Taxpayers, and in further detail on page 5. See highlighted notes advising how to transfer amounts into Mclowd’s Trust Distributions table.

PAGE 3: 2016 INDIVIDUAL TAX RETURN INFORMATION (SUPPLEMENTARY SECTION)

Trust Distributions Table Example 2

PAGE 5: Annual Distribution and Tax Statement

Trust Distributions Table example 3To calculate the correct capital gains amounts, you need to look carefully at the Discounted and CGT Concession amounts shown above, then compare with the Gross Capital Gains shown on page 3. You may note that Gross Capital Gains shown on page 3 is less than the Total Capital Gains shown on page 5. This is a result of the way tax is levied.

Enter the Discounted Capital Gains amount shown on Page 3 in Mclowd’s Column I.

Deduct the Gross Capital Gains shown on Page 3 from Total Capital Gains shown on Page 5 and insert the difference in Mclowd’s Column E. (This portion of the capital gain is tax free.)

NEXT: TRUST DISTRIBUTIONS – EXAMPLE 4

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about the author:

Lorraine Cobcroft

With a background in accounting and financial management, followed by two decades writing software documentation, Lorraine joined the Mclowd team in mid-2016 and is enjoying working with a dynamic team to enhance an innovative product that has the potential to revolutionize the way Australians manage their retirement funding. Lorraine is also an accomplished business writer, ghost-writer, novelist and short-story writer and poet.

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