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tax deferred status

Discussion in 'Accounting, Tax & Legal' started by redrover, 10th Oct, 2006.

  1. redrover

    redrover Well-Known Member

    Joined:
    16th Aug, 2005
    Posts:
    131
    Friend has money with Cromwell Commercial Property Trust returning 12% paid monthly tax deferred status. What is the implication of the tax deferred status? does the company pay the tax on your behalf? do you get your full invested amount returned at maturity, or is it net of tax effect?
     
  2. NickM

    NickM Co-founder Staff Member

    Joined:
    20th Jun, 2005
    Posts:
    321
    Location:
    Sydney
    Hi Red Rover
    Tax deferred income commonly refers to depreciation allowances.

    Tax deferred income results in a coprresponding reduction of the cost base of your unit price.

    If you sold the units then you would reduce your cost base by the tax deferred amount

    Regards
    NickM