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I thought limited referred to companies? Not trusts?

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926 Posts.

09/12/16

15:54

Post #: 21233870
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Originally posted by pugsley100 ↑

An example on the list.
VICINITY HOLDINGS LIMITED
I have units in that business which invests in real estate like shopping centres.

They don't tend to pay dividends with associated franking credits, rather they make distributions that can be made up of a number of components.

The components are treated differently for tax purposes in the hands of the recipient.
For instance the tax deferred amount affects the cost base of the original investment, so ultimately has an affect at the time of a Capital gains Tax event being triggered for me the holder.

Australian taxable income.
Discounted Capital Gain.
CGT concession amount.
Tax deferred income.
Tax free amount.

So the amount of tax ultimately paid depends on who gets the distribution and their total income from all sources.

Similarly a company that pays dividends with franking credits.
Some recipients of that franking credit might have a low income and claim it back at tax time.

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I thought limited referred to companies? Not trusts?
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