• Trusts

    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 the 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 the 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)

    E10

    Annual cost base reduction exceeds cost base of interest in AMIT

    when the reduction happens

    excess of cost base reduction over cost base

    no capital loss

      Last modified: 09 May 2016QC 17157