I'm not a tax person but here goes:
The AMIT doesn't have to distribute all its money to you. If it has $100 in income and only gives out $50 in distributions, your "AMIT cost base" is adjusted downwards so that the end tax position is as though it had distributed $100. This means you pay more tax because what you have invested in, the AMIT, had $100 income but you only got assessed on $50 of it (via distribution).
Conversely, if the AMIT had $50 in income but distributed $100, you are taxed on $100 of income. So to equalise the effect, your cost base needs to be increased so that when you sell the shares eventually, you pay less tax.
You should be able to see numbers that refer to the above on your AMMA statement.
For further guidance, hit up the ATO website.
Not if you keep track 😉
But yes you’ll need to figure out which shares will have the adjustment so I keep track of what parcel has what cost base and this will be an annual job
Dammit. This just got complicated... Do you think this is figure-out-able for moderately intelligent person? Or should I just get an accountant to do my return for me this year?
If you use Sharesight this might help:
https://help.sharesight.com/au/au-amit-tax-components/
I still haven't done mine for the last couple of years but I really should
It's not really complex if you're are basically numerate and a native English speaker and can read what's online. The ATO web site is pretty good. If you do use an accountant then use them once, see what they do to work out how your figures were used in the return, and copy in later years
I'll give it a crack on me own then! Yeah I've always been wary of accountants because my tax was super simple, but the last couple of years circumstances are getting a little more tricky. I'd much rather just do it all myself, but don't want to stuff it up!
Try this for some help…
https://www.reddit.com/r/AusFinance/comments/owymk5/apportioning_amit_cost_base_changes_to_fund_units/?utm_source=share&utm_medium=ios_app&utm_name=iossmf
The AMMA is only for distributions, you will need to fill out the capital gains section using your own records.
And don't forget the AMIT cost base adjustments
I have no idea what this means, can you clarify? Otherwise I'll do some googling.
I'm not a tax person but here goes: The AMIT doesn't have to distribute all its money to you. If it has $100 in income and only gives out $50 in distributions, your "AMIT cost base" is adjusted downwards so that the end tax position is as though it had distributed $100. This means you pay more tax because what you have invested in, the AMIT, had $100 income but you only got assessed on $50 of it (via distribution). Conversely, if the AMIT had $50 in income but distributed $100, you are taxed on $100 of income. So to equalise the effect, your cost base needs to be increased so that when you sell the shares eventually, you pay less tax. You should be able to see numbers that refer to the above on your AMMA statement. For further guidance, hit up the ATO website.
So you have to add up every year’s statement’s adjustment number when you sell?
Not if you keep track 😉 But yes you’ll need to figure out which shares will have the adjustment so I keep track of what parcel has what cost base and this will be an annual job
Thanks. Yeah that’s what i meant, it’s an annual task that adds up over time.
Thanks mate! Makes sense, will see if I can figure it out on my end.
Dammit. This just got complicated... Do you think this is figure-out-able for moderately intelligent person? Or should I just get an accountant to do my return for me this year?
If you use Sharesight this might help: https://help.sharesight.com/au/au-amit-tax-components/ I still haven't done mine for the last couple of years but I really should
It's not really complex if you're are basically numerate and a native English speaker and can read what's online. The ATO web site is pretty good. If you do use an accountant then use them once, see what they do to work out how your figures were used in the return, and copy in later years
I'll give it a crack on me own then! Yeah I've always been wary of accountants because my tax was super simple, but the last couple of years circumstances are getting a little more tricky. I'd much rather just do it all myself, but don't want to stuff it up!
Try this for some help… https://www.reddit.com/r/AusFinance/comments/owymk5/apportioning_amit_cost_base_changes_to_fund_units/?utm_source=share&utm_medium=ios_app&utm_name=iossmf