2017/18 Tax Planning – Investment Entities

Investment Entities

  • Consider realising capital losses if you have already realised capital gains on other assets during 2017/18 – please discuss with your financial planner to consider your personal circumstances.
  • Conversely, consider realising capital gains if you have unrecouped capital losses, or you expect substantially higher income in 2018/19 compared to 2017/18 – discuss with your financial planner.
  • For tax purposes, subject to cash flow requirements, consider setting term deposits to mature after 1 July, rather than before 30 June.
  • Please inform us of any capital gains or franked distributions so we may consider the streaming of income prior to finalising any distributions by 30 June.
  • Please note that most investment entities will not qualify for the reduced tax rate (or Small Business Entity tax offset for distributions) as they will not qualify as a small business. This is assessed as part of preparing your tax returns so please let us know if the entity has changed its business activities.
  • If you have a trust please ensure trust distribution resolutions and minutes are documented and signed by 30 June 2018.  If these documents are not in place by 30 June 2018 then the trust will potentially be liable for tax on income at the top marginal rate.  We will be in touch shortly to discuss the preparation of these documents.