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When to declare distribution income

Discussion in 'Accounting, Tax & Legal' started by islandgirl, 21st Jun, 2007.

  1. islandgirl

    islandgirl Well-Known Member

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    18th Sep, 2006
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    Middle of beautiful Moreton Bay, Qld
    OK so this is a basic newbie question but I am just not sure on one technical point.

    If the fund declares distributions on 30 June but they don't actually hit your bank account until the 4th July, do you delare the income for this year or next?
     
  2. MattR

    MattR Well-Known Member

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    23rd May, 2007
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    Sydney
    Generally you'll need to wait for the Fund to issue you with an "Annual Tax Statement" which most will do by the end of September for the year ending 30 June.

    There can be quite a difference in the break up of cash distributions and the actual earnings of the trust which are generally not readily apparent in the distributions. As cash accounting and tax accounting can be quite different.

    And in answer to your question, it depends on what is in the distribution, how the fund is accounting for certain assets etc.etc...BUT ...generally yes, you'll need to declare this year. BUT speak with the Fund, more than likely they will be issuing you with an Annual Tax Summary and that will have the Tax information that you'll need to declare.
     
  3. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Location:
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    Yup, generally you'd declare it for the year it was earned (ie. this year).