Transferring "Trustee" property

Thanks for the offer, but property is in WA.

 

Thanks for the suggestion.

Original purchase contract shows the ABC Pty Ltd as Trustee for SMSF and ABC Pty Ltd as Trustee for Family Trust as tenants in common 50% equal shares.

In addition, we have maintained separate bank account and prepared separate financials each year.

 

Thankyou. Will do that.

We did this many years ago, before we came more knowledgeable. Learning all the time.

 

Sorry, I didn't quite see the question.

However, I think the answer is clear - I need advice.

Thanks for everyone's input.

 

A SMSF is not able to acquire property from a member or related trusts. An exception is available for business real property.

 

How is land defined here?

 

You will need to seek legal advice.
if residential it is likely not to be business real property - but could be depending.

 

I have read the posts here and have real concern about inexperienced and unquialified replies.

You may be confusing legal and beneficial entitlements. The company may be trustee in two capacities. If the beneficial ownership is currently with the SMSFONLY then thats fine. If its not you need legal advice. A SMSF and DT cannot co own a property without some serious problems.

Lets assume the SMSF owns the property. I raise a legal issue. How does XYZPty Ltd in its capacity for SMSF sell to a DT. A company cant contract with itself. Which capacity? If it could then the SMSFmay be in breach and have an inhouse asset. Sole purpose test may also be compromised.Could the trustee for the DT be compromised?? How is the % to be recognised in law ?Is there a tenancy in common ? Is there a SISA breach ?

There are reasons why a SMSF trustee should be sole purpose trustee company. Sales to a DT could pose a SISAbreach and specialise SMSF legal advice would be prudent. Or a serious breach could render the smsf non compliant.

In QLD its also dutaible. CGT event - Absoluteley. CGT relates to a CGT interest not a legal interest

 

Who even suggested you set these up with the same trustee, op?