All Topics / General Property / Is this possible?

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  • Profile photo of Rick staRick sta
    Participant
    @rick-sta
    Join Date: 2011
    Post Count: 120

    Hi all,

    I've started the process of strata titling my duplex (first strata title), and just had a brainwave.

    What if I could sell half of the duplex to my SMSF (corporate trustee), thereby realising the capital gain yet still maintaining full control of the property.

    Is this possible under this structure?

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    Hi Rick

    You cannot sell residential property to your own SMSF.  Even if you could it would have triggered both CGT and stamp duty.

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of Dan42Dan42
    Member
    @dan42
    Join Date: 2008
    Post Count: 619

    Unfortunately not. There are rules relating to related party transactions that would not allow your SMSF to purchase your residential property.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Sometimes, though rarely, residential could qualify – the definition of what is allowable is 'business real property', not commercial. Not sure if this could meet that definition though.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Certainly can buy residential property inside your SMSF but you fail there on 'the related party' section of the SISA.

    You could always sell the property and make a Deductible / Non Deductible contribution to your SMSF. 

    Cheers

    Yours in Finance

     

    Richard Taylor | Australia's leading private lender

Viewing 5 posts - 1 through 5 (of 5 total)

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