Loading
This thread is archived and the information may not be up-to-date. You can't reply to this thread.
_Putya64(Newbie)Newbie
10 Feb 2021

Hi everyone,

I have a question. If a MIT makes a loss but has non-assessable income (lets say the one that reduces the cost base). Can we distribute that non assessable amount to the unit holders ? How it is all going to look like form the Unit Trust point of view? Will this amount be assessable for unit holders? It all looks confusing because we cannot distribute anything out of trust if the trust makes loss as per ATO website. Any help will be much appreciated.

Thanks.

831 views
1 replies
831 views
1 replies

Most helpful response

Most helpful reply

Bruce4Tax(Taxicorn)Taxicorn
10 Feb 2021

If a MIT makes a loss but has non-assessable income (lets say the one that reduces the cost base).

Can we distribute that non assessable amount to the unit holders ?

That will depend on how the trust deed defines income.

Will this amount be assessable for unit holders?

Non-assessable income will not be assessable - the unit trust should issue a tax statement to beneficiaries.

It all looks confusing because we cannot distribute anything out of trust if the trust makes loss as per ATO website.

Correct - but income can be whatever the trust deed says is income.

Look at the Bamford case material as well.

All replies

Most helpful reply

Bruce4Tax(Taxicorn)Taxicorn
10 Feb 2021

If a MIT makes a loss but has non-assessable income (lets say the one that reduces the cost base).

Can we distribute that non assessable amount to the unit holders ?

That will depend on how the trust deed defines income.

Will this amount be assessable for unit holders?

Non-assessable income will not be assessable - the unit trust should issue a tax statement to beneficiaries.

It all looks confusing because we cannot distribute anything out of trust if the trust makes loss as per ATO website.

Correct - but income can be whatever the trust deed says is income.

Look at the Bamford case material as well.

  • Avatar of man brown hair and beard
Liked by _Putya64
Loading
Distribution of non assessable income from MIT that makes a loss. | ATO Community