Tax-Deferred Distributions from Property Trusts

question 21

Multiple Choice

Tax-deferred distributions from property trusts:

• A) are declared by the unitholder recipient as income in the tax return in the year of receipt.
• B) are used by the unitholder recipient to decrease the cost base of the investment in the property trust.
• C) are used by the unitholder recipient to increase the cost base of the investment in the property trust.
• D) are only available to unitholder recipients where they have held their investment in the property trust for at least 12 months.

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Definitions:

Termination

The action of bringing or coming to an end, which can refer to contracts, employment, negotiations, and other engagements or agreements.

Partnership

A partnership is a legal form of business operation between two or more individuals who share management and profits.

General Partner

is a member of a partnership who has unlimited liability for the debts of the partnership and takes part in the management of the business.

Unlimited Personal Liability

A legal condition where individuals are fully responsible for all of a business's debts or liabilities without any limit, risking personal assets beyond the investment in the business.