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RPD's avatar
RPD
Trusted Partner
4 years ago

Trust Tax Calculation - Deceased Estate, within 3 years of DOD.

The Trust has a taxable income of $21,706, and in the distribution statement code 15 is used, so no beneficiary distriubution.   On the tax return front cover, we selected tax table 5 - Sec 99 Dece...
Syed1's avatar
Syed1
MYOB Staff
4 years ago

Hi RPD,

 

For the first three income years, the deceased estate income is taxed at the individual income tax rates, with the benefit of the full tax-free threshold. Deceased estates do not get the benefit of tax offsets (concessional rebates), such as the low-income tax offset. No Medicare levy is payable.

ATO guideline does not specify if tax offsets are applied after the 4th income year
https://www.ato.gov.au/Individuals/Deceased-estates/Doing-trust-tax-returns-for-a-deceased-estate/Tax-rates---deceased-estate/#Fourthincomeyearandlater

 

MYOB tax software calculates low-income offset when that tax table is selected, which shouldn't be happening and needs to edit manually until this is fixed in the future software update.
 
Regards,
Syed
Customer Support Representative

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