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Hi @SuperHero
No. Members of the SMSF or their relatives can't live in the property while it's owned by the SMSF. You can read about this on our page for related parties and relatives.
One option you may have is the SMSF selling the property to the members once both members meet a condition of release. If you don't transfer the property into the members' names, you risk breaching the sole purpose test.
However, an individual trustee may be able to receive an in-specie payment after a commutation, in lieu of a cash payment. Some individuals make this choice when they're receiving an income stream, and decide to take a lump sum payment. It will also depend on their super balance and their portion of ownership of the property. Trustees will need to consider the governing rules of the fund and any CGT implications associated with the transfer of assets in lieu of cash.
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Hi @SuperHero
No. Members of the SMSF or their relatives can't live in the property while it's owned by the SMSF. You can read about this on our page for related parties and relatives.
One option you may have is the SMSF selling the property to the members once both members meet a condition of release. If you don't transfer the property into the members' names, you risk breaching the sole purpose test.
However, an individual trustee may be able to receive an in-specie payment after a commutation, in lieu of a cash payment. Some individuals make this choice when they're receiving an income stream, and decide to take a lump sum payment. It will also depend on their super balance and their portion of ownership of the property. Trustees will need to consider the governing rules of the fund and any CGT implications associated with the transfer of assets in lieu of cash.
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