Tax return for family trust help please!

Discussion in 'Accounting & Tax' started by icic, 25th Jan, 2018.

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  1. icic

    icic Well-Known Member

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    Hey all, I am in the process of preparing for my Trust tax return.
    This is my first trust so please be patient with me. Essentially here's the structure:
    - I have used two trusts to purchase a property
    - Each of the trust have a company each as a trustee.
    The trust was setup last year in early last year but the property was only purchased in May 2017
    The questions that I want to ask are:

    1. Do I need complete trust tax returns or business tax return ? or both?

    2. Can I defer the return as the properties where purchased quite late last financial year.

    3. Do I need TFN and ABN for each of the trust for the tax return? the trusts are only holding one single property, I was hoping that it could be easily done my self.

    4. Please share your experience with family trust tax return if possible and how you guys normally deals with it.

    5. Any tax agent recommendations that you normally used for this kind of thing would be greatly appreciated. I am located in Sydney near the CBD, we need it to be done urgently as requested by the bank for finance(sorry to say we have been procrastinate on it for a little to long).

    Any comments and pointers would be much much appreciated!
     
  2. icic

    icic Well-Known Member

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    Hey @Terry_w would be really great if you can give me some directions thanks!
     
  3. Mike A

    Mike A Well-Known Member

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    @Paul@PFI is based in sydney. Give him a call
     
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  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    I would never recommend any DIY trust tax efforts. Trusts are not like personal ownership. Trusts NEED to reflect the trust assets and liabilities in financial reports and formal documents that the ATO, OSR, lenders and others will rely upon. The finance request is a great example of that.

    The tax return is part of that. I have one in front of me now. Trust losses last year skipped, non-resident assessment issues, resident / non-resident issues. Other trust may also have issues with resolutions to distribute income and also physical distribution issues.

    Regretfully I often find that reports and records havent been maintained and its often almost impossible to address that failure. My job is to assist clients and taxpayers with difficulties but I cant recreate a legal position.

    Quick answers
    1. Yes
    2. No
    3. They should have already been applied for. An ABN isnt needed for a resi property investor trust.
    4. Every situation varies. There is no such thing as normal.
     
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  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Your trust? Is it a bare trust?

    You would probably be merely one discretionary beneficiary of the trust.


    1. You don’t. The trust will need a tax return, and the company. What is a business return?

    2. You can’t, but the trustee can’t either. A tax return must be lodged.

    3. Each trust will need a TFN and each company as well. ABN may or may not be needed

    4. Most use a tax agent

    5. Yes try Paul
     
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  6. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    ? Land tax registration
    ? Surcharge land tax issues
     
  7. icic

    icic Well-Known Member

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    Thanks all for replying! will pm you @Paul@PFI in regard to other details. thanks
     
  8. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Don't think Paul accepts PMs.
     
  9. icic

    icic Well-Known Member

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    Thanks for letting me know Terry. I will call him at a convenient time. I just sent an email with a question about trusts you created for me. please check thanks.
     
  10. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Correct. My details are below any post however.
    I do that so PC doesnt become a means for work communications
     
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