Australia's leading provider of affordable legal kits and services
Call our Customer Care Specialists on 1300 728 200
   

Legal Forum

Welcome to the FREE AussieLegal Forum

Please select the state your legal matter resides in:

ACT  NSW  NT  QLD  SA  TAS  VIC  WA  

This legal forum is supported by participating lawfirms in your local area.

  FAQ FAQ  Forum Search   Register Register  Login Login

Transfer business real property to SMSF

 Post Reply Post Reply
Author
  Topic Search Topic Search  Topic Options Topic Options
dragonracer View Drop Down
Newbie
Newbie


Joined: 01/February/2007
Location: Australia
Posts: 1
  Quote dragonracer Quote  Post ReplyReply Direct Link To This Post Topic: Transfer business real property to SMSF
    Posted: 01/February/2007 at 11:18

Hi, I wonder if someone could point me in the right direction... My wife and I own the shares in a company which has as its sole asset commercial premises worth 400k.  This has no debt.  I run a business on this property and pay rent to the company.  Can I move shares to the value of the super contribution limits into my super fund each year and claim this as a tax deduction?  Is moving the shares considered the same thing as moving business real property into super.  If this is not workable, what is the best way to move the property/shares into super? Thanking you in advance.

Super Outsource View Drop Down
Admin Group
Admin Group
Avatar

Joined: 19/August/2005
Location: Australia
Posts: 322
  Quote Super Outsource Quote  Post ReplyReply Direct Link To This Post Posted: 02/February/2007 at 09:40
Hi Dragonracer

It certainly is possible, however a number of considerations need to be taken into account:

Capital Gains on the property!

If moved to super the property MUST be transferred at arms length market value as detrmined by an approved valuer.

If the property is in the super fund, it MUST be leased on arms length basis again determined by an approved valuer, and the lease must be properly documented.

There will also be stamp duty and GST on the transfer.  The GST is merely a timing issue anomaly, but the stamp duty may be quite expensive dependent on which state you are in.

The transfer of the property CANNOT be done by way of share transfer!

The property needs to be sold to the fund.  How this is managed through either strict sale or deductible contributions as offsets to CGT issues etc... is far to complex to be conducted in the forum.

If you wish please contact Super Outsource on 02 9434 2468

The bottom line is it can be done

Cybil View Drop Down
Newbie
Newbie


Joined: 21/June/2007
Location: Australia
Posts: 1
  Quote Cybil Quote  Post ReplyReply Direct Link To This Post Posted: 21/June/2007 at 13:50

I have a farm total area of 52 ha on which I do not live and on the title is a registered profit a predre forestry joint venture. THe JV is approx 25ha of forestry with another 5ha of trees that are not a part of the JV, The JV is with a government department of primary industries. There is a livable shed on the block which is tenanted and under 2ha iin area,

Is it please possible to confirm that under section 66 of the Superannuation Industry (Supervision) Act 1993 I can transfer this property into my SMSF super fund?. The farm is not used for any other purpose.

Appreciate your assistance

Super Outsource View Drop Down
Admin Group
Admin Group
Avatar

Joined: 19/August/2005
Location: Australia
Posts: 322
  Quote Super Outsource Quote  Post ReplyReply Direct Link To This Post Posted: 21/June/2007 at 15:11
Hi Cybil

These are matters of fact. 

If the farm of 52Ha is considered a viable farm size in that area then the answer is YES.

Super Outsource

salmanq View Drop Down
Newbie
Newbie


Joined: 24/August/2007
Location: Pakistan
Posts: 1
  Quote salmanq Quote  Post ReplyReply Direct Link To This Post Posted: 24/August/2007 at 21:28
Hi, This post is very informative, however I would like some specific information. If someone can help me then please send me a private message. Best Regards,



Edited by salmanq - 09/April/2014 at 16:58

GregNazvanov View Drop Down
Newbie
Newbie
Avatar

Joined: 17/March/2009
Location: Australia
Posts: 23
  Quote GregNazvanov Quote  Post ReplyReply Direct Link To This Post Posted: 17/March/2009 at 18:08
yes, correct.
www.linkedin.com/in/gregnazvanov

GregNazvanov View Drop Down
Newbie
Newbie
Avatar

Joined: 17/March/2009
Location: Australia
Posts: 23
  Quote GregNazvanov Quote  Post ReplyReply Direct Link To This Post Posted: 17/March/2009 at 18:09
the comments above are correct. What you may also consider is if the company is pre-1983 and if you can wind it. need more info.
www.linkedin.com/in/gregnazvanov

 Post Reply Post Reply

Forum Jump Forum Permissions View Drop Down

Want to save money?

Check out our list of do-it-yourself legal kits.

Need formal advice?

Let us help you find a lawyer who specializes in your particular area of law.

Need further information?

Visit our legal forum where you can ask questions and search for similar topics.