Property expense invoices for properties under family trust

For a property under a family trust with a corporate trustee, which of the following 4 options the invoices from the tradies should address

Option 1: xxx Pty Ltd ATF xxx Family Trust
Option 2: xxx Pty Ltd
Option 3: xxx Family Trust
Option 4: John Smith

Thanks

 

1

 

2

 

It make far more sense to be number 2 but I was told otherwise from my accountant previously... I'll have to follow that up with her later on in the week when I see her. I've learnt a lot from your posts but still a long way to go!

 

what is the legal entity?

 

The company.

I guess what you're eluding to is the company is legally responsible and at the business end of any transaction. Therefore there's no need to specify on the invoice it's actions are as a trustee as that's irrelevant for this sort of transaction.

Correct?

I feel severely inadequate when reading your replies - although super informative!

 

The primary importance is that the invoice clearly outlines the property that has work on the property on it.

tradies can stuff it up and the ato know this. What is important is that the work was done on the relevant property (and not your family home).

 

If you are acting as trustee there is no legal need to tell anyone really. It generally won't hurt though.

 

Actually it wont matter who name is on the invoice. The trust however must incur and pay the expense. Paying it personally may be fatal to any deduction, depreciation or costbase issues. But if the trustee reimbursed that personal and incurs the cost then all is fine. Doesnt matter that the invoice has Mr Smiths name on it.

I agree too on Ross's view that the detailed nature of what works and what property are important as well. The ATO regularly find invoices issued to property owners that openly describes works performed at other property (eg the beneficiary home). And even invoices that deliver specific assets elsewhere. eg Not to the QLD IP but to the Melbourne home of the owner.

 

Thank you all for your help.