Hi, Just wondering if a trust can be used to separate a capital gain to get the CGT discount. For example, Trust has $100 capital gain which is eligible for CGT discount -> trust's net capital gain is $50 -> all this is distributed to Beneficiary A Beneficiary A has $100 capital loss for investments under his own name When beneficiary A lodges his tax return, will he have a $50 net capital loss to carry forward (being his own $100 loss and $50 net gain from trust) or $0 net capital loss (being his own $100 loss and $100 grossed-up gain from trust)? The above question is basically a lead-up to the following ultimate question. If two beneficiaries (A & B) both invest (in shares and probably property later on) and have a family trust, who generally should hold which investments? Obviously, by holding it under a trust, losses from investments on behalf of A can be offset against gains from investments on behalf of B, without needing to wait for next year's gain (which may not even occur). However the discount CGT effect may also come into play. For example, maybe the trust should hold the long-term investments (over 12 months) and the beneficiaries should hold the short-term investments and high-risk investments (which may generate losses)??