We have Clients whose farming land is in their SMSF and they farm the land in a Partnership. With a recent market appraisal the value of the land and hence Member’s account balances in the SMSF has increased dramatically. This means that for future years the level of pensions required would be prohibitive and not able to be covered by lease payments made by the Partnership to the SMSF. It has therefore been decided to transfer some land out of the SMSF which has been owned for 15 years and which will produce a large capital gain. We understand that the SMSF cannot access the small business CGT concessions because although the land is an asset used in the active business of the Partnership, the Partners are not regarded as controlling the SMSF and therefore the two entities are not “related” for the purposes of CGT. Is this correct and why?
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SMSF is not a business taxpayer and therefore not eligible for any of the SBE CGT concessions - whether or not partners are related.
But, if SMSF is fully in retirement pension mode, then all capital gains are disregarded.
If SMSF is partially in retirement pension mode, then capital gains will be disregarded to the extent of the actuary %.
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SMSF is not a business taxpayer and therefore not eligible for any of the SBE CGT concessions - whether or not partners are related.
But, if SMSF is fully in retirement pension mode, then all capital gains are disregarded.
If SMSF is partially in retirement pension mode, then capital gains will be disregarded to the extent of the actuary %.
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