Tax Handling of UPT becoming LPT

Discussion in 'Accounting & Tax' started by JasonC, 8th Nov, 2018.

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  1. JasonC

    JasonC Well-Known Member

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    I have an investment of a unlisted property trust that is about to list and become a REIT.

    From my perspective is the listing a capital gains event? I suspect not (if I retain “units” in the new entity).

    Likewise if I sell down some units shortly after the listing does the 12 month hold time (for capital gains tax discounts) go back to when I purchased units in the unlisted fund, or the listing date?

    Thanks,

    Jason
     
    JasonC, 8th Nov, 2018
    #1
  2. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Tax information would normally be contained in the information provided to unitholders. I would normally expect to see that advice and also a ATO ruling (either applied for or issued) on the matter to determine if a rollover event may occur and what CGT impact arises.

    Listing on a exchange is not a CGT event however the nature of the changed interests could be new CGT assets and replace the former interests
     
    Last edited: 8th Nov, 2018
    Paul@PAS, 8th Nov, 2018
    #2
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