Tax – Trust - Technical overview

Item	Field	Where can I find this?	What is it?	Example
1	Business income	Fact Find input	This occurs when a business is run through the trust.	Total asset held as security
2	Rental Income	Calculated from asset register	Proparty assets * expected yield	150000
5	Investment Income	Calculated from assets register	Investment assets * income yield	400000
6	Franking Credits	Calculated from assets register	SUM OF: Investment income * (1 – Company tax rate) * Franking credit percentage.	300000
7	Sub Total A	Calculated	SUM OF ITEMS 1-6	200000
8	CGT Assessable Income	Calculated from CGT register	The net assessable CGT income (Note: Capital gains can be distributed directly to beneficiaries. See CGT register)	50000
9	Sub Total B	Calculated	ITEM 7 + ITEM 8	1100000
10	Deductible Interest	Calculated	Calculated from debts	0
11	Other deductible expense items	Calculated	See expense register	0
12	Sub Total C	Calculated	ITEM 10 + ITEM 11	0
13	Taxable Income	Calculated	Item 9 – Item 12	0
14	Existing tax losses	See fact find	Existing tax losses can’t be distributed, thus are carried forward to future years.	0
15	Initial taxable income	Calculated	Item 13 – Item 14	0
16	Final taxable income	Calculated	If initial taxable income is less than zero, than taxable income is reset to zero and tax losses are carried forward.	2200000

Distributions

17	Taxable income distribution	Optimised	If a discretionary trust the optimisation engine will determine the most tax effective entity to distribute income to.