Work I do on a property I own in a company name, can I charge myself?

Just wondering, say for instance I own a property in a company name, can I invoice my company for the labour I do on it?

 

You could, but should you?

 

As a sole trader contracting to the company do you have insurances and Public Liability Insurances in case you have an accident or cause damage?

 

do you have an abn ?

will need to charge the company for services provided so that will be income in your name that you will be taxed on.

 

Ok gotcha.

 

Through one trust (a business trust), my wife charges our other trusts (investment property trusts) a fee for maintaining each trust's set of books. It is legitimate work that she does that I don't do.

It is a mechanism for moving revenue from one trust to another so that this trust makes a profit, albeit a small one.

 

Do you mean property that is in a trust with a corporate trustee?

 

It's a discretionary trust.

 

That is important information left out, but doesn't really change things much in this situation. You would want to try to divert income from you to the trust so that it could be passed on to lower income beneficiaries.

 

Its also probable that this is personal services income that cannot be passed to a beneficiary. The trust cant perform work only people can. eg You mow laws and do maintenance and then the trust charges this to you, the owner at a inflated cost for purposes of splitting income. The commerciality and the Part IVA issues may need advice.

Many people mistakenly think a trust can be used to split income when the PSI rules can limit this.
Throw in Part IVA also...

 

I just wanted something that acknowledged the time and effort I put in it over the past few days.
Of course it makes no sense to do so though....
It's my IP just in a different ownership structure.

 

it's not 'yours' if you don't own it legally or beneficially.

 

What kind of work?

In SA you can pay yourself $23.53/hr out of the bond to tidyup after eviction , regardless of ownership structure.

Assume other states have similar provisions.

 

I didn't know that. Will need to check next time.

Technically, that's the tenant(s) paying you, not you paying you .

 

I could make you a Certificate of Appreciation

 

Preparing the place before it is income producing.

 

Perfect. That's what I need!
I can make you a Certificate of Appreciation too for making me one.

 

Or some mulberry jam

 

No more mulberries

 

Ive just bought a new PPOR and it has its own mulberry bush, and 4 acres of blackberries. You are welcome to them all