CGT, Streaming & Trust Losses – Trust Tax Fundamentals 2025

Learn about the interaction of capital gains with trusts, how to stream types of income, and tests for applying trust losses.

In this unit, we cover:

• CGT and trusts - an overview

• Some CGT events relevant to trusts

• How to treat capital gains in a trust

  • Streaming of capital gains

  • Flow through of capital gains - Subdivision 115-C

  • Specific entitlements

• Trust losses

  • Which tests apply to deduct a loss or debt in a trust?

  • 50% stake test

  • Same or similar business test (SBT)

  • Pattern of distributions test

  • Control test

  • Income injection test

Date recorded: 22 May 2025