Hi - Hoping someone can help
Discretionary Trust - ASX Share Assets - Cost or Market Value on Balance sheet - why?
Earlier answers have indicated that ''Market value'' preferred method for trust balance sheet - can anyone suggest why this is preferred? And does it even matter for Tax?
My sticking point at that if we use market value - then the 're-valuation' each year is going to create a ''notional income'' or ''notional loss'' (unrealised gain / loss) in the ledger. For the purposes of this question assume it is ÃÂncome/gain. This then becomes 'Trust Law Income' and must be distributed according to the deed/default? Accepting that this is not necessarily the same as the ''distribution for tax purposes'' then the Balance sheet is always going to be out-of-sync with the Tax return? - plus, with beneficiary loan accounts, changes in Accountants etc etc. there is the danger it quietly becomes absorbed into corpus/capital without tax being paid :)
So why do the ATO ask for this infomation? - surely it's meaningless to them!
finally my question... is there another box somewhere on the return to reconcile this (as per company returns)?
many thanks
Phil
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