Hi All,
I am considering setting up a SMSF and would like to know if it is possible to either sell or transfer my existing investment property into the SMSF?
My accountant told me that it is not possible because you cannot sell a residential property to a SMSF where the owner is a member of the SMSF.
Is there any legal structure available or can be setup where you can do this but not breach the SMSF regulations?
Has anyone done something like this before?
thanks
No it is not possible.
A SMSF is prohibited from acquiring an asset from a related party. There is an exception of "business real property' but residential will not qualify.
You couldn't even sell to a unit trust or to a mate and then resell it (not that you would with the stamp duty) because the anti avoidance provisions will capture this.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
As Terry mentioned:
1) Yes the SMSF can purchase a Commercial property from a member or related party as long as doesn't breach the in-house Asset rules under the SIS Act and the consideration is done at market value.
Few other criteria but it can be done.
One of the benefits would be to sell it when you are Pension phase as there is no CGT.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
If you have sufficient funds in the new fund, then you can go and buy an IP but it can't be one that you already own (unless it is a commercial premises).
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