SMSF Quiz - Two Hoyts Movie tickets for correct
answer.
Robert turned 60 on 29th June 2007. For financial year ended
30th June 2007 he was self employed.
On 29th June he
contributed $100K deductible contribution to reduce his capital gain tax and sold
all his shares and contributed $850,000 cash as un-deducted contribution to his
newly established self managed super fund.
On 1st July 2007, he paid 15% tax on contribution
and with the balance $935,000 ($850,000 non-concessional (tax free) + $85000
concessional (taxable)) he converted his accumulation account to pension phase
and commenced an account based pension and invested all funds in interest
earning
investments.
His only son, James, is sole beneficiary of the fund via a biding death
nomination and is the other director of the trustee company. James is a doctor and lives with his wife &
kids in a mansion in Sydney.
On 20th December 2007 Robert dies. From 1st July 2007 till the date
of death, the fund earned $40,000 interest and Robert has drawn $20,000 as a
pension from the fund.
Question: How much tax will James have to pay
when he
receives Robert's death benefit payment from the SMSF.
Options:
11)
No tax, as most of the money is un-deducted
contribution.
22)
$3300 ($40,000 income less $20,000 pension = $20,000 * 16.5% tax rate + medicare levy)
33)
$19,800 ($100K deductible contribution + $40
income less 20,000 pension = $120,000 *
16.5% tax rate + medicare levy)
44)
$23,100 ($100K contribution less 15% tax of '07 year
= $85,000 + $40,000 income (pension is tax free since Robert is over 60) = 140,000* 16.5% tax rate + medicare levy)
55)
$14,355 ($100K contribution less 15% tax of '07 year
= $85,000 + $4,000 10% share of
concessional income - $2,000 10% share of
pension = 87,000 * 16.5% tax rate + medicare levy)
66)
17,325 (start Balance in the fund $935,000 + 40,000
Income less 20,000 pension = $955,000 less non-concessional at start 850,000 =
105,000 * 16.5% tax rate + medicare levy)
77)
No tax, since James can get a pension from the
fund.
88) No tax, as James being sole trustee after Roberts death can pay death benefit to his mother (who Robert divorced 20 years back)
Email answer to quiz@ucservices.com.au
and win 2 movie tickets (first 10 correct entries) to Hoyts cinema. All entries
must be received by 15th March.
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