DIY Tax for Trust

Discussion in 'Accounting and Tax' started by SmiTTy2008, 7th Apr, 2010.

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  1. SmiTTy2008

    SmiTTy2008 Member

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    Hello,

    Wondering if anyone has lodged their own taxes for their DT?

    Just curious, as when starting up a trust and only having one maybe two properties - trying to save on costs as much as possible when its still fairly simple.

    Would still hire an accountant to do it for the more complex (eg. 2+), but if im only holding one property while building my portfolio - is this a fairly simple thing to do. Have confidently done my own tax in the past with a couple of properties and share portfolio.

    thnx
     
  2. geoffw

    geoffw Untitled

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    Try to get a copy of Dale Gatherum Goss's "Trust Magic".

    IMHO, if there's more than three things you read where you say "Wow, I didn't know you could do that", then you should be going to an accountant- you may have lost a lot of money otherwise.
     
  3. MattR

    MattR Member

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    A couple of things....

    1. The Oz tax system is a self assessment system. You prepare it yourself (or with the help of a Tax Agent) and the ATO accepts the return. Unlike say criminal law, the onus of proof is on you, the taxpayer! So just because you have prepared and lodged does not mean that it's right.

    2. Trust law - it's really easy until you start looking into it!
     
  4. alexlee

    alexlee Member

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    If you have to ASK whether it's simple to do, I'd suggest at least having it looked over by an accountant.

    At Matt said, just becuase you confidently did your tax return before and the ATO didn't audit you doesn't mean it was right. It just means you didn't get audited.
     
  5. coastymike

    coastymike Member

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    I think the accounting work within the trust is fairly simple and something that most people could handle but it is the additional work that could get you into a mess. Ensuring your resolutions comply with Bamford's case, do you title the document resolution or minutes (had a QC tell me an important reason for calling it one over the other), who do you make trust distributions to, are the distributions in accordance with the deed, will any distributions result in the application of Division 7a, is their an unpaid present entitlement, do you record the unpaid present entitlement as a loan, if not why ? So many things to get wrong.

    Having dealt with a number of offshore voluntary disclosures over the past 2 years and working closely with the Serious Non Compliance Unit of the ATO I can assure you that it is extremely important to cross your i's and dot your t's.
     
  6. brucea

    brucea Member

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    It's a very easy return to complete. If I were you I'd check out the form and the instructions and if it all makes sense, do it yourself. If you find yourself struggling a bit I'd pay an accountant to do it only until it all makes sense and then do it yourself - seeing as you're clearly a diy type of person.

    The 2009 return is NAT 0660 and the instructions are NAT 2297. Here are the links to pdf copies:

    http://www.ato.gov.au/distributor.asp?doc=/content/00189343.htm
    http://www.ato.gov.au/distributor.asp?doc=/Content/00189402.htm
     
  7. mja

    mja Capitalist.

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    Get an accountant to do it. It's tax deductible and one less thing you have to worry about.
     
  8. Luv2Travel

    Luv2Travel Member

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    But coastymike thinks it's easy and compares accountants to hairdressers! :p

    I agree, unless you have an accounting background and absolutely know what you're doing, get an accountant to do it.
     
  9. coastymike

    coastymike Member

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    I said the accounting work is easy, the tax stuff I would leave to an accountant :p
     
  10. SmiTTy2008

    SmiTTy2008 Member

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    Thanks for the input guys.. will check out the forms and see what happens. Even if I get an accountant to do it this yr .. I do want to eventually learn how to do it just out of interest . Will keep u informed
    cheers!
     
  11. Evachange

    Evachange MFAA Credit Adviser

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    I do all my own bookkeeping, but leave the TAX Return to the Accountant for both my trusts.

    Happy to do all the MYOB/Quickbooks stuff, and run the P&L and Balance Sheet but that is it.

    Get an accountant, it will take the hassle out of it all.
     
  12. pickle pickle

    pickle pickle Member

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    The issue with doing it yourself is working out the accounting distribution and tax distributions (these are often different)

    If you plan to only distribute to one person then it's ok, but more than one, the distribution miniutes can become difficult if you are not an accoutant.

    Also tax laws and interpretations change all the time. Just recently it looks like a major change to distributions to companies is about to occur. I think it's best to use an accountant.
     
  13. CruzAccountant

    CruzAccountant Member

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    You can do it yourself, but it'd be best to get an accountant to review it and make sure you're on the right track. This should lower your costs a bit.

    From an accountant's point of view, if the info comes to us neat, easy to read and balanced, then it will cost us less to do. This should translate into a lower bill for you.

    Ask for a quote before engaging an accountant. Some accountants provide the first consultation free of charge.