Ok but unlisted PIE investment funds you do ?
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Snoopy if there is any imputation credits on any listed PIE then they show in one box and the associated Gross Dividend in another box.
The statement is called a PIE Statement as distinct from a Dividend Statement.
Example
Gross Dividend $100.00
Imputation Credit $28.00
The PIE's do not have to provide anything more to you as a holder.
If your income is less than $48,000 then you can include it and use the credit of the imputation credit in your return up to a maximum of what tax you would pay. If you still have any of the credit over you can accrue it for further years.
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OK, I think I am getting there. One more question though. Using your example above, how much money is deposited into your bank account? Is it $100? Or is it ($100-$28)=$72? Or is it something else?
I think the twisted nomenclature of KFL calling a 'capital return' a 'dividend' is confusing me. Is the 'Total Dividend'(sic) equal to - as declared by KFL- the sum of the 'Gross Dividend' and the 'Capital Return'? I am having trouble understanding exactly what figures KFL are feeding their unit holders.
SNOOPY
Here is one of my PIE statements for KFL (June 22) - happy to share. The "excluded income" is the capital return and should not be declared on your tax return. See the "notes" (click on image to enlarge).
.Attachment 14636
That will do the trick for Snoopy and for many others too ...its very self explanatory ....:t_up:
PS : Will help them understand the merits of listed PIE investments ...especially to retired or semi retired ...no need be expert in Tax law ...no need even file IR3s to keep it simple like SPC
$72.00
Snoopy it is not KFL on it's own. All the property PIEs do it the same way.
I know some on here refer to any capital return as the excluded amount but whether that is correct I am not sure. That is beyond my knowledge. All I know is they distributed income and capital gain as they see fit and I don't waste my time caring how it is calculated.
Thanks JAK. I will ignore the 'excluded income' as that is just your own capital that Kingfish are giving back to you.
So the IRD relevant 'income figures' are:
Gross Dividend (same as Attributed PIE income) $7.47 less Imputation Credits (same as PIE tax paid) $2.09 equals Net Dividend $5.38
I note that: $2.09/$7.47 = 0.28. That ties in with the maximum PIE tax rate of 28%. If this same information was listed on your IRD 'Summary of Income' it would look like this:
PIE name Attributed PIE Income/Loss PIE tax paid PIR at year end PIR changed Kingfish Fund $7.47 $2.09 28% No
The form then goes on to say: "If you are an individual investor you can choose whether to include this amount in your income tax return. Individual investors on lower than the 30% marginal tax rate may choose to do so to gain the benefits of the imputation credits attached."
I note there is no instruction on where you should claim these imputation credits. This suggests to me you could EITHER claim the imputation credits by declaring the Kingfish payments as dividends -as some here have opined- OR through the IR3G worksheets as they relate to PIE income, associated with questions 36 and 37 in the IR3G guide. It is your choice as to which way you do it (or choose not to do it at all).
Of course, if you take the latter declaration path, you would have to know that:
'Gross Dividend' = 'Attributed PIE income'
-AND-
'Imputation Credits' = 'PIE tax paid'
That is not made clear on the form.
SNOOPY
It would, but listed PIES like KFL do not submit any of this info to IRD so it does not appear there. It is up to me to declare it if I wish to.
Quote:
=Snoopy;1007292]Thanks JAK. I will ignore the 'excluded income' as that is just your own capital that Kingfish are giving back to you.
So the IRD relevant 'income figures' are:
Gross Dividend (Attributed PIE income) $7.47 less Imputation Credits (PIE tax paid) $2.09 equals Net Dividend $5.38
I note that: $2.09/$7.47 = 0.28. That ties in with the maximum PIE tax rate of 28%. If this same information was listed on your IRD 'Summary of Income' it woudl look like this:
PIE name Attributed PIE Income/Loss PIE tax paid PIR at year end PIR changed Kingfish Fund $7.47 $2.09