Joined: 01/February/2007
Location: Australia
Posts: 1
QuoteReplyTopic: 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.
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
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.
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,
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