In this course you will consider the trust loss tests that apply to fixed and non-fixed trusts, the eligibility conditions a trustee must satisfy in making a family trust election and the application of family trust distribution tax to distributions made to members outside an elected family group.
This course sets out the three most common reasons a trustee may choose to lodge a family trust election, the need to preserve:
By the end of this course you should be able to weigh up the relative advantages and disadvantages of a trustee making a family trust election.
Reference is also made to the continuity of ownership test in carrying forward tax losses of a company which is 50% or more owned by a non-fixed trust, and the application of the 45 day holding period rule to beneficiaries of a discretionary trust receiving franking credits.
You will also consider alternate strategies that may be available to retain trust losses, a subsidiary company’s tax losses and franking credit entitlements without making a family trust election.
This one hour online course forms part of the FastClass short course suite.
This course is for tax practitioners with responsibility for the preparation of income tax returns and businesses involving trusts.
This course is based on the Australian taxation system.