Hi ATO,As a member of a SMSF , I wish to purchase the property from the fund and transfer ownership to my personal name. This will be at the market valuation as if someone else bought the property.Please advise the process to keep my SMSF compliant.Thanks
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Best to get a sworn valuation of the property.
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Best to get a sworn valuation of the property.
The process can be as follows:
- Obtain an independent valuation conducted by a qualified valuer (e.g., using comparative sales).
- Engage a conveyancer to make the proper adjustments based on commercial terms for the statement of adjustment (land tax, council rates, insurance etc.)
- Pay the proceeds to the SMSF.
- Pay the correct CGT tax within the SMSF.
If you are over 60 years old and meet the conditions for release, you may consider paying it as a lump sum to achieve ECPI, provided your TBC is not exceeded, potentially exempting the capital gain.
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