WebThe correct answer is "II, III, and IV". Statement I is inaccurate because the expected return of a portfolio is the weighted average of expected returns for each share in the portfolio, not the weighted average of projected prices. The second statement is true. When a dividend is declared, the share price should decrease by the declared ... WebFranking effects For dividend imputation, from the 2016–17 income year onward, the maximum franking credit that can be attached to a distribution is relative in the “corporate tax rate for imputation purposes ”.5 Essentially, this rate is the expected current year corporate tax rate, assuming that the aggregated turnover, assessable
45 Day Holding Rule - Franking Credits
WebJan 27, 2006 · Under the franking credit holding period rules, franking credits and associated tax offsets are not available to taxpayers who have not held shares at risk for more than 45 days. The rules are aimed at preventing franking credit trading. In announcing the amendment today, the Minister for Revenue and Assistant Treasurer, … WebHolding period rule. The holding period rule requires you to continuously hold shares ‘at risk’ for at least 45 days (90 days for certain preference shares) to be eligible for the … springhill suites hurstbourne north
Claiming franking credits attached to a trust distribution
WebJul 13, 2024 · A key difference here is that, under the ATO’s ‘Holding Period Rule’, investors in Bank Hybrid Securities must continuously hold the instrument ‘at risk’ for at … WebAug 23, 2010 · If the trust receives fully franked dividends of $20,000 for the current financial year, it would include $28,571 in its assessable income, being the dividend amount of $20,000 plus the franking credit amount of $8,571. The trust will be able to claim the interest expense of $32,000 (8 per cent per annum of $400,000) as a deduction. WebBob will be entitled to claim the $3,000 Franking Tax Offset because although he has held the shares less than the 45 (+2) day holding period the total offset he is claiming is less than $5,000 and he holds the shares in his own name. Had Bob purchased the shares in his company he would not have been entitled to claim the $3,000 Franking Tax ... springhill suites houston brookhollow