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Trust name

Discussion in 'Accounting & Tax' started by R377, 4th Sep, 2015.

  1. R377

    R377 Well-Known Member

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    Hi, I have just set up a new trust. Basically without thinking too much of the name. My first trust was my own name, the second trust i set up was exactly the same but with the word "two" at the end....

    Is the revenue / land tax definitely going identify it as a separate name trust if the only difference is the word "two" or should i have just named it something completely different just to save any possible error ?

    thanks,
     
  2. D.T.

    D.T. Adelaide Property Manager Business Member

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    Nah,it'll be fine. They'll have different tfn / abn

    Do they have different trustee or same?
     
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  3. R377

    R377 Well-Known Member

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    same trustee. accountant told me wont need an ABN but will need a TFN from memory.

    Does that sound right ?
     
  4. D.T.

    D.T. Adelaide Property Manager Business Member

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    Is it a company trustee? In SA you can do a land tax declaration so that each trust pays its own land tax , even with same trustee.

    I thought it'd need an abn though to open its own bank account?
     
  5. R377

    R377 Well-Known Member

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    Apparently most banks want an abn but my accountant argued against it - if it is not trading you don't need one...
     
  6. D.T.

    D.T. Adelaide Property Manager Business Member

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    It'll need its own bank account to keep its funds separate. Rent and expenses should go thru that account before being distributed to beneficiaries. So whatever the bank requires...

    Perhaps he confused abn with gst registration, won't need that if only holds residential property.
     
  7. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    The accountant is 100% correct. An ABN is only required when a trust conducts an enterprise and has an entitlement to hold a ABN. Passive income from residential rent is not reason to obtain a ABN. If the rent was commercial then it must hold an ABN. The accountant will no doubt just apply for a TFN.

    The bank may ask if the entity has an ABN but it doesn't need one. In fact a ABN cant be demanded from anyone. The bank will need to determine the ACN for the Trustee company and the TFN so interest is not subject to withholding.
     
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  8. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    A trust is not a legal person so probably no one will see its name - other than the ATO on the tax returns..
     
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  9. D.T.

    D.T. Adelaide Property Manager Business Member

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    The bank will see its name when they take a photocopy of the deed to open a bank account using companyname ATF trustname. Or at least have for me the past couple of times.
     
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  10. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    I did similar too, but regret it a little, because explaining it to others can get confusing.
    Ours are:
    XXXXX Family Trust and XXXXX Family Investment Trust.

    Next time, I would just keep it as short and simple as possible, because filling out forms, dealing with banks, all other docs, takes too long to write out XXXXX & XXXXX Co. Pty Ltd ATF XXXXX Family Investment Trust.
    And describing these names over the phone can be a hassle too.
     
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