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  • Profile photo of ricci535ricci535
    Member
    @ricci535
    Join Date: 2012
    Post Count: 1

    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

    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: 16,190

    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://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    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 | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

Viewing 4 posts - 1 through 4 (of 4 total)

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