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LPT's and Income Tax

Discussion in 'Shares' started by Triu, 10th Nov, 2006.

  1. Triu

    Triu Well-Known Member

    Joined:
    1st Sep, 2006
    Posts:
    161
    Location:
    WA
    Hi can anyone tell me if i am to pay income tax on income i receive from LPT's which are tax deferred.

    I mean if i am receiving a monthly income is also added at the end of the year where i have to pay tax on this income?

    thanks

    Triu
     
  2. NickM

    NickM Co-founder Staff Member

    Joined:
    20th Jun, 2005
    Posts:
    321
    Location:
    Sydney
    Hi Triu
    If it is tax deferred then no tax is payable.

    The tax deferred component actually acts to reduce the cost base of your units, hence the tax is deferred until you actually dispose of the units.

    The year end tax statement will show that the tax deferred component is not required to be disclosed in your tax return.

    I read that Morningstar were doing some analysis of funds to reflect an "after tax" position when comparing funds.

    I havent seen the results yet.

    NickM
     
  3. Triu

    Triu Well-Known Member

    Joined:
    1st Sep, 2006
    Posts:
    161
    Location:
    WA
    Thanks Nick i appreciate your valuable input.