Hi all,
Does anyone know if you can have an ACN or ABN on a DT. I am looking at Invoicing from a Trust using an ACN.
Any ideas?
Cheers
BenHi Ben
The ACN = Australian Company Number. Trusts don't get these because they are not companies. Your trust can and probably should have an ABN if it is comducting a business. A TFN is needed too.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks Terry. Does this mean I can invoice out using the ABN and if the income is less than 75K I dont need to register for GST?
Cheers
BenBen, Yes certainly does.
Just remember the requirement to be GST registered is a turnover > 75,000 not an income. Big difference.
Richard Taylor | Australia's leading private lender
Thanks Richard. Much appreciated. This will affect our call later in the week
sorry…another question. Does the invoice have to be property related or can I invoice a company for work done that is in no way related to the trust assets or property?
Cheers
BenIf your entity is conducting a business you can claim business related expenses. Actually you could claim anything, but would need to justify it if audited so it is up to you how far you want to go – eg. is your pet dog really a guard dog?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks Terry.. I am still a bit lost sorry. I am slow.
You are saying I can claim expenses but can I invoice for services. What I am thinking of doing is invoicing my employer for part of my wage to help offset losses in the trust. Cheers
BenOh, sorry, So you want to do some work and then charge your trust? I am feeling a bit slow now.
I guess you could. But why would you want to do that? You would have to pay tax on the income that the trust pays you. it would be better to leave the profit in the trust and then distribute it to the lowest tax payer.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks . Its late and I dont make a lot of sense about this stuff. I want to reduce my wage with the company I work for but then invoice them from the trust for contract work i do for them. This can then help offset rental losses and allow me to distribute income to a lower tax payer. make sense? As its a DT I cant claim the loss until I sell the property but I can offset the loss with other income that comes into the trust.
Cheers
BenHi Ben
I see. So you want to contract through your trust. Yes, that can be done, but you have to set it up correctly otherwise the ATO will still deem you to be earning the money. Do some research of "Alienation of Personal Services Income". there are some good booklets on http://www.bantacs.com.au about this.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
great.. thanks Terry!!
basiclly what you are talking about is the 80/20 rule right? i.e. you cant earn more than 80% of your income from the one source
That is only one of the many rules. it seems a very complex area of tax, but iwht some planning you may be able to do it. I think there was also some articles in the http://www.lawcentral.com.au newsletters.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
You must be logged in to reply to this topic. If you don't have an account, you can register here.
