We have a client that has a SMSF that owns a property.
The property is rented out via AirBNB during the year.
Can the member stay in the property during the year? I presume if the answer to this is yes but its an in-house asset how is this calculated?
For e.g if property is valued at $850k (assume only asset) then 5% is $42,500. Does this mean as long as the time she stayed in it is valued under this it is ok?
That seems too easy? What am I missing?
Howdy @TLH-Grow,
No, the sole purpose test comes into play, the property can be rented out for AirBNB to provide financial benefit to the fund, but this is the only benefit it can provide.
Howdy @TLH-Grow,
No, the sole purpose test comes into play, the property can be rented out for AirBNB to provide financial benefit to the fund, but this is the only benefit it can provide.
Can the member stay in the property during the year?
No
I presume if the answer to this is yes but its an in-house asset how is this calculated?
For e.g if property is valued at $850k (assume only asset) then 5% is $42,500. Does this mean as long as the time she stayed in it is valued under this it is ok?
No - IHA value = $ 850 K + property must be disposed if IHA value > 5% of SMSF assets
(S 82)
Arguable that there is also breach of S 62, S 65, S 109.
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