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declaring income from LPT's

Discussion in 'Accounting, Tax & Legal' started by Triu, 29th Nov, 2006.

  1. Triu

    Triu Well-Known Member

    1st Sep, 2006
    Sorry guys i think i asked this question already. If i have income from my LPT's paid monthly or quarterly.

    A) Do i have to declare it as income in my tax return and

    B) Will i have to pay tax on this income from my LPT's i thought it was tax deferred.

    little confused can someone advise the correct way.

  2. Rickson

    Rickson Well-Known Member

    23rd Oct, 2005

    Sorry that you have not had a response yet - the site is not very active at the moment.

    Answers to your questions.

    1 - Yes, you have to declare all property trust income in your tax return. One slight trick is that the income relates to the year in which it was earned, not the year in which it was received. Eg, you receive income in August, but it relates to the financial year that concluded in June. You have to wait for the statements before you or your accountant can complete your tax return.

    2 - Your annual statement from each property trust will include information about which section of the tax return you need to include it in. Some income will be deferred, or not required to be included in the current year's tax return. This will change if you have sold the units during the year, so it gets slightly tricky again. But if you still hold the units, you basically just follow the instructions on the annual statement.
  3. matrung

    matrung Member

    18th Jan, 2007
    Generally, from my understanding, only Direct Property Trusts can pass through Tax Deferred income, ie u don't have to claim a certain % of income as taxable until you actually sell the asset. At which time you must add back all the income which has been tax deferred onto the 'cost base' of the asset for capital gains purposes.