The Resource The income-capital distinction and how it applies to property development
The income-capital distinction and how it applies to property development
Resource Information
The item The income-capital distinction and how it applies to property development represents a specific, individual, material embodiment of a distinct intellectual or artistic creation found in International Bureau of Fiscal Documentation.This item is available to borrow from 1 library branch.
Resource Information
The item The income-capital distinction and how it applies to property development represents a specific, individual, material embodiment of a distinct intellectual or artistic creation found in International Bureau of Fiscal Documentation.
This item is available to borrow from 1 library branch.
- Summary
- TA 2014/1, recently released by the Australian Tax Office (ATO), is concerned with the topic of trusts mischaracterising property development receipts as capital gains and, in doing so, accessing the 50% discount. It deals with arrangements where property developers use trusts to return the proceeds from development as capital gains instead of income. In essence, the trustee treats the gain as a discounted capital gain which can be distributed to beneficiaries in a unit or discretionary trust. The ATO is concerned that the gains should be returned as ordinary income rather than capital. This article examines the views set out in the taxpayer alert, and considers the possible taxation consequences of those views. The author concludes that the income-capital distinction remains of fundamental importance, and recommends that taxpayers and their advisers be on alert to the potential problems and review all relevant documentation with respect to trusts and property development
- Language
- eng
- Label
- The income-capital distinction and how it applies to property development
- Title
- The income-capital distinction and how it applies to property development
- Language
- eng
- Summary
- TA 2014/1, recently released by the Australian Tax Office (ATO), is concerned with the topic of trusts mischaracterising property development receipts as capital gains and, in doing so, accessing the 50% discount. It deals with arrangements where property developers use trusts to return the proceeds from development as capital gains instead of income. In essence, the trustee treats the gain as a discounted capital gain which can be distributed to beneficiaries in a unit or discretionary trust. The ATO is concerned that the gains should be returned as ordinary income rather than capital. This article examines the views set out in the taxpayer alert, and considers the possible taxation consequences of those views. The author concludes that the income-capital distinction remains of fundamental importance, and recommends that taxpayers and their advisers be on alert to the potential problems and review all relevant documentation with respect to trusts and property development
- Citation source
- In: Taxation in Australia. - Sydney. - Vol. 49 (2014),
- http://library.link/vocab/creatorName
- Blissenden, M
- Language note
- English
- http://library.link/vocab/subjectName
-
- investment income
- capital gains
- income classification
- trust
- Label
- The income-capital distinction and how it applies to property development
- Label
- The income-capital distinction and how it applies to property development
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<div class="citation" vocab="http://schema.org/"><i class="fa fa-external-link-square fa-fw"></i> Data from <span resource="http://link.library.ibfd.org/portal/The-income-capital-distinction-and-how-it-applies/oO6wyv9S8go/" typeof="Book http://bibfra.me/vocab/lite/Item"><span property="name http://bibfra.me/vocab/lite/label"><a href="http://link.library.ibfd.org/portal/The-income-capital-distinction-and-how-it-applies/oO6wyv9S8go/">The income-capital distinction and how it applies to property development</a></span> - <span property="potentialAction" typeOf="OrganizeAction"><span property="agent" typeof="LibrarySystem http://library.link/vocab/LibrarySystem" resource="http://link.library.ibfd.org/"><span property="name http://bibfra.me/vocab/lite/label"><a property="url" href="http://link.library.ibfd.org/">International Bureau of Fiscal Documentation</a></span></span></span></span></div>
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<div class="citation" vocab="http://schema.org/"><i class="fa fa-external-link-square fa-fw"></i> Data from <span resource="http://link.library.ibfd.org/portal/The-income-capital-distinction-and-how-it-applies/oO6wyv9S8go/" typeof="Book http://bibfra.me/vocab/lite/Item"><span property="name http://bibfra.me/vocab/lite/label"><a href="http://link.library.ibfd.org/portal/The-income-capital-distinction-and-how-it-applies/oO6wyv9S8go/">The income-capital distinction and how it applies to property development</a></span> - <span property="potentialAction" typeOf="OrganizeAction"><span property="agent" typeof="LibrarySystem http://library.link/vocab/LibrarySystem" resource="http://link.library.ibfd.org/"><span property="name http://bibfra.me/vocab/lite/label"><a property="url" href="http://link.library.ibfd.org/">International Bureau of Fiscal Documentation</a></span></span></span></span></div>
