All Topics / Legal & Accounting / Company to SMSF

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  • Profile photo of gumtreegumtree
    Participant
    @gumtree
    Join Date: 2011
    Post Count: 14

    Hi,
    Steve says if you don’t like the answer you get, ask a different question or ask a different advisor.

    So maybe like minded investors might be able to direct me to an advisor with the right answer or help me with the right question? :)

    If you have a house purchased in a company is it possible to sell that property/company to your SMSF.

    Thanks,

    Andrew

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

    Possibly.

    If you or an associate control the company it may be a related party. A transfer could not be done of the property unless it was business real property. However there could be an exemption to transfer the shares of the company. Look at Reg 13.22 SiS Regs and seek legal advice.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    https://terryw.com.au/
    Email Me

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

    Profile photo of RedwoodRedwood
    Participant
    @redwood
    Join Date: 2013
    Post Count: 340

    Hi Gumtree, it is possible however depends on the facts. Transfers can be made of ‘business real property’, and if not need to look at in-house assets rules, which is a disaster if you breach. In any case, best to sit down with an advisor and thrush it out.

    Cheers, Ivan

    Redwood | REDWOOD | SMSF | PROPERTY | FINANCE
    http://redwoodadvisory.com.au
    Email Me | Phone Me

    SMSF - PROPERTY INVESTMENT - WEALTH CREATION AND FINANCE SOLUTIONS

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

    Yes and No depending on the property as has been set out.

    Might not like the answer but SIS will dictate what you can and cannot do.

    Cheers

    Yours in Finance

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

    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of Anthony KAnthony K
    Participant
    @anthony-k
    Join Date: 2010
    Post Count: 56

    Hi All
    Redwood and Richard are correct,
    Q: The issues are 1. who would buy property in a compsny?
    A: A dumb person because you lose the 50% CGT discount available to individuls, partnerships and trusts (inxl SMSF at 33%)
    Rule 1 NEVER buy any growth asset in a company.
    Next Q
    2. is the property commercial or used in a business carried on by a SMSF Member or other related party?
    A: Yes pass and proceed on arms length terms (Valuation and SISA S109 and S65)
    A. NO. Breach S66 and go to jail less a large wad ofATO cash penalties.
    Whats your next problem?
    Regards
    AnthonyK

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

    One reason a company is considered is beccause of land tax in NSW. A company will get a new threshold. A developer may not get the 50% CGT discount so this may not be an issue for some people. I would generally not recommend a company but I have a few clients who already own property in a company.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    https://terryw.com.au/
    Email Me

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

Viewing 6 posts - 1 through 6 (of 6 total)

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