I'm confused now.
We are renovating a house to sell. I bought a toilet from Bunnings yesterday, paid on my card and will draw down the trust working account or the LOC to reimburse myself. My brother will update the spreadsheet to show that the funds coming from the LOC (or the trust working account) is to reimburse me for the purchase, docket filed away for tax time.
I will be reimbursed from the trust working account, where all rents go in, and all expenses for the houses go out or from the LOC. The LOC works like an umbrella loan, and we keep tight documentation to show who has borrowed what, if it is a loan to a child for a car, or if the drawing is for a toilet purchased for an IP.
It is all tightly documented and correctly apportioned at tax time. Our accountant has never raised an issue about anything amiss. Only expenses relating to a particular house are claimed for that particular house.
We are in the process of closing the trust down, so this rather messy situation will soon be gone.
So, am I wrong in paying for the toilet on my credit card and having myself reimbursed via either a LOC or from the trust working account where all rents go in?
If that is wrong in the eyes of the ATO, then how do I pay for a toilet? I could ask Bunnings if they would allow me to transfer funds from either the LOC or the working account to their account. I doubt that would fly.
I guess I "could" arrange a cheque book but I don't want more paperwork.
With lots of different items having to be purchased to renovate this house before we market it, I will be needing to pay for things. I have to either draw cheques, draw cash from the working account or LOC to pay cash, put it on my card and reimburse myself by transferring from the LOC or working account to my bank account. Is this wrong?