Loading
This thread is archived and the information may not be up-to-date. You can't reply to this thread.
ethantrinh(Enthusiast)Enthusiast
24 Feb 2021

Hi everyone,

I have a scenario. My money is sitting in the bank in my personal account. Now I want to use that money to invest in shares but under Family Trust (I am also the director of the corporate Trustee). I transfer that money into the Family Trust's account and start trading. After awhile I finish investing in shares. I will sell those shares and distribute the earnings across family member to reduce tax. I then transfer the initial capital back my personal bank account. My question is that if the initial capital transferred back is now considered taxable income for me? Thank you very much!

Ethan

2,798 views
2 replies
2,798 views
2 replies

Most helpful response

Most helpful reply

RichATO(Community Support)Community Support
25 Feb 2021

Hi @ethantrinh,

The net income of a Family Trust resulting from capital gain events, such as share trading profits and dividends, is taxable.

It is taxed at each beneficiary's personal income tax rate.

The return of capital via a trustee distribution is not taxable income.

There is more detailed information about Trust distributions on our web site.

I hope that helps.

RichATO

All replies

Most helpful reply

RichATO(Community Support)Community Support
25 Feb 2021

Hi @ethantrinh,

The net income of a Family Trust resulting from capital gain events, such as share trading profits and dividends, is taxable.

It is taxed at each beneficiary's personal income tax rate.

The return of capital via a trustee distribution is not taxable income.

There is more detailed information about Trust distributions on our web site.

I hope that helps.

RichATO

Loading
Tax treatment on family trust investment | ATO Community