Is this allowed?

Discussion in 'Accounting & Tax' started by XtraFL, 5th Sep, 2016.

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  1. XtraFL

    XtraFL Member

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    Thank you Ivan, Mike and Terry,

    Can this property be bought under SMSF with an agreement with my business entity to do and pay for the conversion required and then lease it? No interim residential tenants, ie: purchased with a heads of agreement to be used as commercial.
     
    XtraFL, 7th Sep, 2016
    #21
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    I don't see that changing things.
     
    Terry_w, 7th Sep, 2016
    #22
  3. Mike A

    Mike A Well-Known Member

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    agreed. goes from residential to commercial. i cant see how it changes anything.

    might also breach s 66 (1) as the related party might hold an asset i.e. a right and if that transfers to the SMSF it might be a breach.

    Subsection 66(1) prohibits a trustee or investment manager from intentionally acquiring assets (other than money) from a related party of the SMSF.

    Tread very very carefully.
     
    Mike A, 8th Sep, 2016
    #23
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