Non concession super contribution cap

Discussion in 'Superannuation, SMSF & Personal Insurance' started by PropertyInsight, 27th May, 2018.

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  1. PropertyInsight

    PropertyInsight Well-Known Member

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    1). Non concession super contribution cap currently is $100,000 p.a., reduced from $180,000 p.a. Does anyone think about make a much non concession super contribution as possible, then use super money to acquire properties using SMSF vehicle. When we retire, sell the properties to fund the living costs. As it is super's income, we pay only 10% CGT on the proceed from the property sales. Does it sound good?

    2). How about set up a SMSF, then lend money to SMSF, and buy properties. When retiring, we dispose the properties to fund living costs and enjoy the benefit of 10% CGT.
     
  2. Terry_w

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

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    could be 0% CGT.
     
  3. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    We did number 1 and used the bring forward 3 years rule to get enough money in the SMSF to make it worthwhile. Selling before retirement and after retirement have different percentages for CGT.

    Number 2 is harder because there are rules around what the SMSF can do with loaned money and I'm pretty sure lending to your SMSF is still bound by the same rules - you can't renovate or develop the property.

    ** I have a SMSF but I'm no expert.
     
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  4. PropertyInsight

    PropertyInsight Well-Known Member

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    I did not know about this before buying properties. I have 10+ years more until retirement. I will chip in super to buy the next properties in the future.

    Thanks
     
  5. PropertyInsight

    PropertyInsight Well-Known Member

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    Can I sell my properties to SMSF as the CG now must be less than CG in the next 10 years? What do you think?
     
  6. Terry_w

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

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    Not unless the properties are business real property
     
  7. PropertyInsight

    PropertyInsight Well-Known Member

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    Thanks Terry
    The properties are not under my names. They are under corporate trustee. can i sell them to smsf?
    or can I use properties to make contributions? how it sounds?
     
  8. Terry_w

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

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    Not unless they are business real property if you control the trust.
     
  9. PropertyInsight

    PropertyInsight Well-Known Member

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    So, the only way is to sell the properties, make cash contribution to super, and buy different properties through the SMSF.
     
  10. Terry_w

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

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    There are other ways you can get existing owned mom business real property into a SMSF but they may be impractical