Is this possible in SMSF?

Discussion in 'Superannuation, SMSF & Personal Insurance' started by onemediumcrabbisk, 21st Apr, 2017.

Join Australia's most dynamic and respected property investment community
Tags:
  1. onemediumcrabbisk

    onemediumcrabbisk Member

    Joined:
    4th May, 2016
    Posts:
    15
    Location:
    Australia
    Good Afternoon,

    I have older relative that has 270k in super, & from proceeds on sale on IP have 400k. They want to buy a property , plan to get Development approval then on sell it.

    Few questions:

    1)Is there anyway they can purchase in SMSF?
    2)If they sell after 12 months they pay 10% CGT, would it be better for them to go transition-to-retirement-pension phase?
    3)Is it possible to withdraw the 400k following 24 month period?

    Best Regards
     
    onemediumcrabbisk, 21st Apr, 2017
    #1
  2. Ross Forrester

    Ross Forrester Well-Known Member

    Joined:
    30th Oct, 2016
    Posts:
    2,085
    Location:
    Perth, Western Australia
    Yes
    Pre 1 July yes
    Post no


    If they have met a condition of release yes
     
    Ross Forrester, 21st Apr, 2017
    #2
    Terry_w likes this.
  3. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,517
    Location:
    Sydney
    The words "they" imply two people...Perhaps permitted after 30 June also.
    Age of persons needs consideration also. Could allow or prevent some issues.

    Acquisition of land to produce a profit - Seems like a investment decision. Not a CGT decision but if the tax rate is 0% as fund is 100% pension then its no issue if its CGT or not. GST may be a issue if its land however and the margin scheme may help reduce it IF its allowed. There is a special issue to consider regarding pro-rata CGT if its a CGT event. What seems tax free may be partially taxed. Better if fund explores commencement earlier than later !!
     
    Paul@PAS, 21st Apr, 2017
    #3