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.

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Self-Managed Superannuation Service Providers in Australia. SuperBenefit will SET UP your SMSF and provide investment education for a better result. We take care of all your administration, accounting, ATO lodgement and audit of SMSFs, working with you and your advisors. If you want advice we can arrange one of our recommended advisors and accountants to meet with you, as we do not give advice, but take instruction only. Take control of your super, including property shares and other assets. Learn how to be your own advisor - make better decisions - by being mentored and coached to invest your own super wisely and strategically by qualified partners. Book to come to an event to find out more, or - Call us 0407 361 596, no obligation FREE strategy call.
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