All Topics / General Property / smsf tax

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  • Profile photo of ricci535ricci535
    Member
    @ricci535
    Join Date: 2012
    Post Count: 1
    June 25, 2012 - 1:20 am

    Hi ,I have a volume of money in a smsf  I want to purchase a property outright,The rental returns will go straight back to smsf.
    making money ,Question ; are the funds subject to tax,what are the implications with depreciation on the property ,

    Profile photo of luke86luke86
    Participant
    @luke86
    Join Date: 2010
    Post Count: 470
    June 25, 2012 - 2:12 am

    The implications for depreciation are exactly the same as if the property was owned outside of a SMSF- it reduces the taxable income.

    Cheers,
    Luke

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    June 25, 2012 - 2:57 am

    Tax will depend on a few things. Generally income of a SMSF is taxed at 15%. But the SMSF can claim the usual deductions.

    If the fund is paying a pension then the income could be tax free.

    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
    June 25, 2012 - 5:16 am

    The second question is why would you pay cash for the property when you gear and depending on the amount concerned buy a couple of properties within the SMSF.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

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