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SMSF property

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Newbie

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I am retired (just) and My SMSF owns 50% and I own 50% of a property (for 17 years) which I would like to retire to. My trust deed allows this having reached retirement. Must I do anything formally? Just move in?
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Hi @CAM8,

 

This would be considered as an 'In-specie payment' - An in-specie payment is a payment in a form other than cash. This can include assets such as listed shares, property, or any asset of the self-managed super fund. When making the payment, the super fund must be able to value the asset at market value. Payments cannot be made in-specie where the payment relates to:

  • severe financial hardship
  • compassionate grounds, or
  • the payment is an income stream (except where the income stream payment is partially commuted).

The payment that results from a partial commutation is a lump sum payment and a lump sum payment can be paid either in cash, in-specie (asset), or a combination of both.

 

Making an in-specie payment will have the same administrative obligations as if the super lump sum payment was made in the form of cash. If there is a transfer of ownership because of the in-specie payment, the transfer will be considered a disposal of the asset, and there may be capital gains tax implications. You would also need to have the Title deed transferred into your name.

 

Hope this helps.

1 REPLY 1
Highlighted

Most helpful response

Community Support

Replies 0

Hi @CAM8,

 

This would be considered as an 'In-specie payment' - An in-specie payment is a payment in a form other than cash. This can include assets such as listed shares, property, or any asset of the self-managed super fund. When making the payment, the super fund must be able to value the asset at market value. Payments cannot be made in-specie where the payment relates to:

  • severe financial hardship
  • compassionate grounds, or
  • the payment is an income stream (except where the income stream payment is partially commuted).

The payment that results from a partial commutation is a lump sum payment and a lump sum payment can be paid either in cash, in-specie (asset), or a combination of both.

 

Making an in-specie payment will have the same administrative obligations as if the super lump sum payment was made in the form of cash. If there is a transfer of ownership because of the in-specie payment, the transfer will be considered a disposal of the asset, and there may be capital gains tax implications. You would also need to have the Title deed transferred into your name.

 

Hope this helps.