Do mixed-use properties in an SMSF need to be split during recording in the financial statements?

 Author: RachelATO(Community Moderator)Community Moderator

30 Apr 2026

Hi alauddin,

Our experts have got back to us and explained that when an SMSF owns a property under one legal title, the property is recorded as one asset in the financial statements. Because the fund legally owns it as a single property.

The fact that the property has mixed use should be explained in the supporting records. This helps show which parts are residential and which parts are commercial.

Any income, expenses, and deductions should be split between the residential and commercial parts. The method used should be reasonable and well documented. This helps ensure that income and deductions are treated correctly based on how each part of the property is used.

Even though the property is shown as one asset, compliance rules are checked separately. Residential areas are assessed under the rules for residential property. The commercial area is assessed under the rules for business real property and arm’s length transactions. This should be recorded in the auditor’s working papers.

Under super law, trustees do not use a ‘dominant use’ approach to make classification easier.

For more info, you can read through the Guide to valuing SMSF assets. You should chat with an SMSF agent or accountant though. They'll use guidance from their professional body to classify the mixed‑use of the property in financial statements.

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