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Buying Share from SMSF and Profit you make

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Initiate

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Replies 8

hello,

you know SMSF we invest in purchase share and if the share price go up we may sell the share, my question is now the profit we made by sellign share can we transfer and take that profit into the trsutee personal spending account?

1 ACCEPTED SOLUTION

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ATO Certified

Community Support

Replies 0

Hi @siliconfund_17

 

Thanks for joining our Community!

 

The information @onestopshop has provided is correct - we just wanted to refer you to some useful information on our website.

 

Any profit or income generated by an SMSF must stay in the SMSF as a benefit preserved for the members' retirement, it cannot be distributed to the members unless they meet conditions of release.  

 

Check out the information below that relates to SMSFs:

 

If you have further questions regarding your SMSF you can phone our Superannuation area on 13 10 20, between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks.

 

 

 

 

 

8 REPLIES 8
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Superuser Registered Tax Practitioner

Replies 7

Hi siliconfund_17

 

You must satisfy one of the conditions of release in order to transfer money/benefit to a member.

 

One Stop tax
Tax Return and Taxback Specialist

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Initiate

Replies 6

Hello,i am not asking to relaese the benefit. what i am asking lets say i bought $ 20,000.00 share from SMSF now the pshare price becousem $ 30,000.00 cna i access that 10,000.00 profit  from SMSF to personal? 

 

could you please explain claerly beocuse it confusing? its says that in super law a benefit may payable but not under SMSF.

 

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Superuser Registered Tax Practitioner

Replies 5


@siliconfund_17 wrote:

Hello,i am not asking to relaese the benefit. what i am asking lets say i bought $ 20,000.00 share from SMSF now the pshare price becousem $ 30,000.00 cna i access that 10,000.00 profit  from SMSF to personal? 

 

could you please explain claerly beocuse it confusing? its says that in super law a benefit may payable but not under SMSF.

 


First confirm we are talking about a listed security (shares listed on an approved stock exchange). Second, there is some serious issues regarding sole purpose test. As a trustee when you make an investment decision you must ensure it is in the best interest of the SMSF. Why did you in first place sell SMSF shares to its members? What was rationale behind it?

 

One Stop tax
Tax Return and Taxback Specialist

 

 

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Initiate

Replies 4

yes it is approved  Stock exchnages. 2nd  it tis the best inetrest of the SMSF now where you have found that the share is sold to it members,

 

share is not sold to its members. there is misunderstanding. Share sold to the palce where you bought it from. not to the members.  after the sell the original investment come back to the SMSF, ther eis no question for that to access the supermoney question is the profit that generate from these share will that is accessable.

 

 

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Superuser Registered Tax Practitioner

Replies 2


@siliconfund_17 wrote:

yes it is approved  Stock exchnages. 2nd  it tis the best inetrest of the SMSF now where you have found that the share is sold to it members,

 

share is not sold to its members. there is misunderstanding. Share sold to the palce where you bought it from. not to the members.  after the sell the original investment come back to the SMSF, ther eis no question for that to access the supermoney question is the profit that generate from these share will that is accessable.

 

 


Hi

 

If shares were purchased and sold by SMSF, then any profit generated remains in SMSF too.

 

One Stop tax
Tax Return and Taxback Specialist

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Replies 1

thank you for yuor reply,

 

are you sure about that the profit also must remain in SMSF. wold you able to sned me a taxation office link where i can read that information.

 

becouse some other accoutnant are in opinion that only the super annaution amount shoudl remain and you cna transfer the prfit into your personal account. 

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Community Support

Replies 0

Hi @siliconfund_17,

 

The information we can provide on our Community is general in nature and so is the information on our website.

 

If you'd like detailed information relating to your circumstances you can contact our early engagement team by submitting a request form or requesting a call back and someone will contact you and discuss your circumstances further.

 

Thanks.

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Best answer

ATO Certified

Community Support

Replies 0

Hi @siliconfund_17

 

Thanks for joining our Community!

 

The information @onestopshop has provided is correct - we just wanted to refer you to some useful information on our website.

 

Any profit or income generated by an SMSF must stay in the SMSF as a benefit preserved for the members' retirement, it cannot be distributed to the members unless they meet conditions of release.  

 

Check out the information below that relates to SMSFs:

 

If you have further questions regarding your SMSF you can phone our Superannuation area on 13 10 20, between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks.