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  • Trusts

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    CGT event

    Time of event

    Capital gain

    Capital loss

    E1 Creating a trust over a CGT asset

    when the trust is created

    capital proceeds from creating the trust less the asset's cost base

    asset's reduced cost base less capital proceeds

    E2 Transferring a CGT asset to a trust

    when the asset is transferred

    capital proceeds from the transfer less the asset's cost base

    asset's reduced cost base less capital proceeds

    E3 Converting a trust to a unit trust

    when the trust is converted

    market value of the asset at that time less its cost base

    asset's reduced cost base less that market value

    E4 Capital payment for trust interest

    when the trustee makes the payment

    non-assessable part of the payment less the cost base of the trust interest

    no capital loss

    E5 Beneficiary becoming entitled to a trust asset

    when the beneficiary becomes absolutely entitled

    for a trustee-market value of the CGT asset at that time less its cost base; for a beneficiary-that market value less the cost base of the beneficiary's capital interest

    for a trustee-reduced cost base of the CGT asset at that time less that market value; for a beneficiary-reduced cost base of the beneficiary's capital interest less that market value

    E6 Disposal to a beneficiary to end an income right

    the time of the disposal

    for a trustee-market value of the CGT asset at that time less its cost base; for a beneficiary-that market value less the cost base of the beneficiary's right to income

    for a trustee-reduced cost base of the CGT asset at that time less that market value; for a beneficiary-reduced cost base of the beneficiary's right to income less that market value

    E7 Disposal to a beneficiary to end capital interest

    the time of the disposal

    for a trustee-market value of the CGT asset at that time less its cost base; for a beneficiary-that market value less the cost base of the beneficiary's capital interest

    for a trustee-reduced cost base of the CGT asset at that time less that market value; for a beneficiary-reduced cost base of the beneficiary's capital interest less that market value

    E8 Disposal by a beneficiary of capital interest

    when the disposal contract is entered into or, if none, when the beneficiary ceases to own the CGT asset

    capital proceeds less the appropriate proportion of the trust's net assets

    appropriate proportion of the trust's net assets less the capital proceeds

    E9 Creating a trust over future property

    when the entity makes an agreement

    market value of the property (as if it existed when the agreement was made) less incidental costs in making the agreement

    incidental costs in making the agreement less the market value of the property (as if it existed when the agreement was made)

    Last modified: 06 Oct 2009QC 27417