430 | Test Individual in a Family Trust Election
When you look at family trusts, everything rotates around the Test Individual. They are the stick in the sand.
Posts
429 | FTE Questions
When you work with private clients the question of a Family Trust Election almost always comes up. But you need to be careful. A family trust election can be dangerous and cost you a lot of tax, ie. Family Trust Distribution Tax.
410 | Foreign Trusts and Companies
In this episode, we cover six questions about foreign trusts and companies.
409 | Assessment of the Trustee
When we talk about trust distributions, we always mention the possible assessment of the trustee. Especially when a trust distribution goes wrong, But what does that actually look like?
408 | s99B Carve Outs
s99B Carve-outs are your way out. They protect you from s99B ITAA 1936.
407 | s99B ITAA 1936
s99B ITAA 1936 is about foreign trusts paying accumulated income to Australian resident beneficiaries. Take away one of these elements, and you don't have a s99B issue.
402 | Trust Loss Allocation
Trust Loss Allocation - Upton v Brown sets the scene. And then Cajkusic and Raftland confirm Upton v. Brown but very much limit its application.
401 | Trust Loss Questions
Let's go to the very start and look at trust income. Because we need to understand trust income before we can talk about trust losses.
400 | Foreign Trust Example
The theory around foreign trusts is confusing. So in this episode let's use a New Zealand trust as a foreign trust example.
399 | Foreign Trusts
Foreign trusts are not an issue per se. Nor are resident trusts. It really depends. But if you do have a foreign trust, watch out for s99B ITAA 1936. That is a really dangerous one.
398 | Asset Protection Trust
An asset protection trust (aka equity split) does not give you 100% protection but it helps. Each layer you use increases your protection from creditors.
390 | Child Support Non Agency Payments
Child support non-agency payments are payments to third parties credited to a child support liability.
389 | TR 98/4 Situations 4 and 5
TR 98/4 situations 4 and 5 are about non-arm's length income and arrangements.
388 | TR 98/4 Child Maintenance Trust Arrangements
TR 98/4 is about child maintenance trust arrangements. It lists five scenarios where the CMT does not qualify for excepted income.
387 B | Child Maintenance Trust Income
Child maintenance trust income - this is the second part of our interview about the excepted income in child maintenance trusts.
387 A | CMT Excepted Income
CMT excepted income is what a child maintenance trust is all about. If you don't have excepted income, then there is little point in having a CMT.
362 | Disclaimer of Trust Income
A disclaimer of trust income used to be easy - not anymore as Andrew Henshaw of Velocity Legal in Melbourne will tell you.
347 | s100A Q & A
In this s100A Q & A session in our mini-series about s100A ITAA36 we go through all the outstanding questions you still had.
340 | s100A ITAA36
s100A ITAA36 is about reimbursement arrangements. I pay you something and then you pay me straight back - that sort of arrangement.
324 | Default Beneficiary
A default beneficiary might save your trustee from paying top marginal tax rates on trust income and capital gains - without a 50% CGT discount.
323 | Missing Trust Distributions
Missing trust distributions can cost you a lot of money unless you have a default beneficiary.
314 | Child Maintenance Trust Questions
In this episode Patrick Huang will go through 10 child maintenance trust questions you sent in.
311 | Who Gets The Family Home
What happens to your family home when your parents die? Here are Amanda Morton and Paul Goldin with some insights.
309 | Child Maintenance Trust
A child maintenance trust can save you a lot of tax but it comes at a huge cost as Simon Bacon of Manby & Scott will tell you.
279 | Losses Need an FTE
Is it always true that losses need an FTE? Let's talk about when an FTE makes sense and when it doesn't.
278 | Testamentary Trust Questions
In this episode Paul Mackenroth of Cleary Hoare in Brisbane goes through ten of your testamentary trust questions.
UPDATE 25 | Testamentary Trust Law Change
There has been a significant testamentary trust law change affecting how distributions to minors are taxed.
273 | Trust Reporting
If you look at the work done in your practice, chances are trusts - especially discretionary trusts - take up a disproportionate amount of time.
270 | How to Save Land Tax
In this episode Geoff Stein of Brown Wright Stein Lawyers in Sydney will discuss 3 ways to save land tax.
264 | Common Trust Deed Issues
In this episode Emily Pritchard of ACIS walks you through 9 common issues around trust deeds.
261 | How To Avoid s109T
s109T is an issue when the recipient of a Div 7A loan isn't a shareholder but minimum yearly repayments are financed via a dividend.
252 | Special Disability Trusts
What is a special disability trust? What can or can’t it do? And why would you set one up? Here is John Saunders with some answers.
401 | Foreign Trust Surcharges
What land tax and stamp duty surcharges does a foreign trust pay in Queensland, NSW or Victoria?
156 | Trust 101 – Part II
Here is Part II of Paul Goldin's overview of simple mistakes that are easy to avoid but even easier to make - Trust 101 Part II.
155 | Trust 101 – Part I
In this episode Paul Goldin of Vectigal will give you a quick overview of simple mistakes around trusts - easy to make - easy to avoid - Trust 101.
151 | Div 7A Listener Questions
In this episode Andrew Henshaw of Velocity Legal in Sydney will answer three Div 7A listener questions.
134 | Testamentary Trust Basics
In this episode Peter Bobbin of Argyle Lawyers will tell you when a testamentary trust makes sense - and when it doesn't.
133 | ITAA97 NANE
In this episode Peter Bobbin of Argyle Lawyers will tell you more about a new non-arm’s length concept - non-arm’s length expenses - NANE.
126 | Tax Talks Q & A
This Tax Talks Q & A goes through 10 questions and comments you sent in up to April 2019.
114 | Deceased Estate
A deceased estate entails a myriad of legal and tax questions. Here is Michael McCarthy of Tax & Super Australia with the answers.
97 | Trust Income Streaming
Trust income streaming is an important feature of non-fixed trusts. Here is Paul Mackenroth of Cleary Hoare with the details.
96 | Taxation of Trusts Div 6 ITAA36
The taxation of trusts lives in the 'old' ITAA36. Paul Mackenroth of Cleary Hoare in Brisbane will walk you through the framework of Division 6.
95 | Family Trust Elections
Family trust elections play an important role but are not a one-size-fits-all solution. Paul Mackenroth of Cleary Hoare in Brisbane will tell you more.
94 | Revocable Trusts
Section 102 of ITAA36 about revocable trusts is an anti-avoidance provision. Paul Mackenroth of Cleary Hoare in Brisbane will tell you more.
91 | Trust Structure
Choosing the right trust structure is an important step to effectively manage and administer wealth. Here is Paul Mackenroth of Cleary Hoare with more.
90 | Set Up a Discretionary Trust
How do you set up a discretionary trust? Paul Mackenroth of Cleary Hoare in Brisbane will walk you through the process.
89 | Duties of Trustees
The relationship between trustee and beneficiary is defined by rights and duties. Paul Mackenroth of Cleary Hoare in Brisbane will tell you more.
80 | Elements of a Trust
There are over 800,000 trusts. Paul Mackenroth of Cleary Hoare in Brisbane will walk you through the elements of a trust.
Articles
99 | Trust Resettlement
Trust resettlement scares many, but is actually quite rare to occur. A trust resettlement is a CGT event and hence triggers capital gain tax.
70 | Div 7A UPE
The scenario of a Div 7A UPE can result in a huge tax bill. UPE stands for unpaid present entitlement.
60 | Small Business Participation Percentage
The small business participation percentage plays a crucial role when you sell shares or units and want to qualify for the small business CGT concessions.
55 | Affiliates and Connected Entities
The concept of affiliates and connected entities plays a crucial role around the small business CGT concessions.
52 | Transferor Trusts
If Australia didn’t have rules around transferor trusts, you could ‘park’ assets and income in overseas trusts.
51 | Trusts as Companies
Corporate unit trusts and public trading trusts are trusts in a legal sense but treated as companies for tax purposes.
50 | Taxation of Deceased Estates
The taxation of deceased estates can be easy and it can be tricky. It depends on what goes in, what happens while it is in there and how it leaves.
46 | Control Test
A non-fixed trust can only deduct tax losses and debt deductions if there is continuity of control of the trust. So here comes the control test.
45 | 50% Stake Test
The 50% stake test is all about who has been holding more than a 50% stake in the trust and whether that has changed from the loss to the income year.
44 | Pattern of Distributions Test
The pattern of distributions test only applies to non-fixed trusts without a family trust election.
43 | Income Injection Test
The income injection test applies to all fixed and non-fixed trusts including family trusts. The only exception are excepted trusts that are not family trusts.
42 | Are Unit Trusts Fixed
A unit trust is a very common feature in Australia. Most widely held trusts are unit trusts. But when are unit trusts fixed trusts and when not?
41 | Trust Losses
Trust losses are not subject to the Division 35 non-commercial loss rules. Instead the trust loss provisions in Schedule 2F ITAA36 apply.
40 | Reimbursement Agreement
A reimbursement agreement is an arrangement, where the trustee channels trust distributions via beneficiaries to a third party.
39 | Revocable Trust
A revocable trust is a pretend game. So the Commissioner can put an end to the charade and tax the trustee instead.
38 | CGT Event E4
A CGT event E4 can only happen in relation to a fixed or hybrid trust interest. The non-assessable part results in a cost base adjustment per s104-70 ITAA97.
35 | Streaming Trust Income Example
How to stream trust income sounds confusing enough in theory but gets even more confusing when you drown in numbers. But here is a simple example.
34 | Streaming Trust Income
Streaming of trust income is a good way to tax-effectively channel income to the right beneficiaries.
33 | Who Pays the Income Tax for a Trust
Beneficiaries and/or trustee pay the income tax for a trust. But who pays how much?
32 | Unpaid Present Entitlement
The issue of unpaid present entitlements comes up pretty much every time you deal with a trust.
31 | Taxation of Minors Div 6AA
The taxation of minors in Division 6AA is an anti-avoidance provision. Anybody channeling certain income to minors is hit with punitive tax rates.
30 | Division 6 ITAA36
Division 6 ITAA36 is the foundation for the taxation of trusts. Everything else wraps around Division 6.
29 | What is a Trust
There are more than 800,000 trusts in Australia with assets totalling more than $3 trillion. But what is trust?
23 | Definition of Trust Income
The definition of trust income in your deed determines who gets what income and as important who pays tax on what income. So you need to get this right.
Tax Talks
Tax Talks is Australia’s tax news podcast for tax professionals. Informative, entertaining and free.
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