Here is how the distribution of trust income to the beneficiary works in LodgeiT. 

LodgeiT supports transfer of capital gain only to individual beneficiaries (ITR). For non-individual entities, capital gain need to be manually entered in each tax return.


In this article:

TRT > Individual Beneficiary

Example where the Beneficiary is an Individual:

Lizza Doe is a beneficiary of Doe Family Trust.

Under "Net income" > "Capital Gain", select whether you want to "Fill capital gains manually?" Yes/No"Regardless of your choice, the system will automatically insert the figures into the ITR.

The trust has a total of  $5000 Australian Listed Shares that needs to be distributed.

In the "Beneficiaries" tab, select "Lizza Doe"

The Trust will distribute $2000 in CGT to Lizza Doe


In the ITR Form, this will be reflected under "Income > Trust", item 13.


TRT > Non Individual Beneficiary

Example where the Beneficiary is a non-Individual entity:

"Bread of Life" is a beneficiary of Doe Family Trust.

In the  "Net income" > "Capital Gain" section, choose whether to "Fill capital gains manually?" Yes/No".

Note that the system will not automatically enter the figures into the tax return for non-individual beneficiaries..

The trust has $2000 remaining "Australian Listed Shares/Capital Gain" that needs to be distributed, $2000 has been allocated to Lizza Doe and $1000 to Arisala Arisu.

Via "Beneficiaries" tab, select "Bread of Life" 

Scroll through the Capital Gain section.


In the CTR Form, the "Capital Gain" should be filled out manually 



The "Capital gain" are all distributed to beneficiaries (for both Individual Tax Return and to Company Tax Return)


Notes: 

  • We currently do not have a feature of automatic manual accounting journal entries related to Trust Loss or Trust Income distribution from tax software to accounting software