Pros and cons of putting your business premises into your SMSF

Property in self managed super SMSF superbenefit

Business Property into your SMSF

One way to free up capital in your self-managed super fund before you reach the preservation age of 55 is to put/transfer your business property into your SMSF (self managed super fund). By doing this you will release money from your superannuation ahead of time, free up the equity in your company’s premises and give your business a cash injection to expand or provide cashflow. And there will probably be no capital gains tax on the transfer to the SMSF, as small business CGT concessions will come into play. But stamp duty may apply on the transfer, depending on which state you live in and the current ownership of the property.

Such transactions can be done only on an arm’s-length basis and the sale must be at the market rate. If there are insufficient funds in the SMSF to pay for the entire property, it is possible to take out a limited recourse loan. Since September 2007, SMSFs have been able to borrow money to buy property or equities. Limited recourse means the lender has no recourse to any other assets in the SMSF should the fund default. Another consideration is the contribution limits, $150,000, or $450,000 with the brought forward rule.


About SuperBenefitnews

Self-Managed Superannuation Service Providers in Australia. SuperBenefit provides a wholistic SMSF assistance, education and administration service continuum - 1. “assistance” is help of whatsoever nature where our overall SMSF experience and knowledge enables us to provide assistance/help without any legal (or “license”) limitations. 2. “education” involves providing knowledge through teaching, coaching and mentoring about all matters SMSF, including (but not limited to) investment issues such as equities and property, 3. “administration” encompasses all admin aspects of legally required SMSF trustee and member record keeping including (but not limited to) audit and ATO matters. In keeping with our key point that SuperBenefit does not provide Financial Advice, where issues arise from 1, 2, and/or 3 above Indicate a need for a legally authorized provider (such as a Financial Adviser) and the client does not have their own service provider, the client can utilize SuperBenefit’s ‘Connect Assist’ … SuperBenefit, in itself, does not provide Financial Advice, but it does provide the wherewithal for great SMSF service. WE do not provide Financial Advice or any other service that requires a legally authorized provider. However, where such advice or service is required we have our ‘Connect Assist’, a SuperBenefit resource we use to connect clients to a Licensed Advisor or other legally authorised service provider. Call us 0407 361 596, no obligation FREE Connection call to see how we can help you!
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