Is this possible?

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

Rick sta
Participant
@rick-sta
Join Date: 2011
Post Count: 120
February 10, 2013 - 1:42 pm
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?
Jacqui Middleton
Participant
@jacm
Join Date: 2009
Post Count: 2,539
February 10, 2013 - 8:47 pm
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
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VIC Buyers' Agents for investors, home buyers & SMSFs.
Dan42
Member
@dan42
Join Date: 2008
Post Count: 619
February 11, 2013 - 6:26 am
Unfortunately not. There are rules relating to related party transactions that would not allow your SMSF to purchase your residential property.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
February 11, 2013 - 1:54 pm
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
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
February 16, 2013 - 1:41 pm
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