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Re: buying property in super

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I'm new

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i have a residential  property that i purchased in partnership with my self managed super fund 10 years ago (with a 76/24 split) can i transfer more of the property into my fund at any point 

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Hi @edie

 

Welcome to our Community.

 

@Bruce4Tax is correct. Your self-managed super fund (SMSF) won't be able to increase its share of the residential property. This is because SMSFs generally can't buy assets from related parties. There are exceptions including where it is business real property.

 

You can read more about acquiring assets from related parties on our website.

 

The fact that you co-own the property with the SMSF is allowed, however it doesn't create an exemption to the related party acquisition rules. Your share of the asset is owned by a related party of the SMSF. In turn, the related party investment restriction applies.

 

As @Bruce4Tax mentioned, your SMSF could reduce or dispose of its share of the property by transferring its ownership to you. To achieve this, you would need to determine the market value of the asset and ensure that you pay the SMSF appropriately.

 

Refer to the valuation guidelines for self-managed super funds page for more information.

 

Hope this helps.

 

Thanks,

 

ChrisR

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ATO Certified

Devotee Registered Tax Practitioner

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No.  The SMSF cannot acquire residential property directly, or indirectly, from a member or associate.

 

Moving part of the property into a trust controlled by the SMSF will not work either.

 

The SMSF can sell the property to a member or associate as long as the transaction is done on an arm's length basis.

 

 

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Best answer

ATO Certified

Community Support

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Hi @edie

 

Welcome to our Community.

 

@Bruce4Tax is correct. Your self-managed super fund (SMSF) won't be able to increase its share of the residential property. This is because SMSFs generally can't buy assets from related parties. There are exceptions including where it is business real property.

 

You can read more about acquiring assets from related parties on our website.

 

The fact that you co-own the property with the SMSF is allowed, however it doesn't create an exemption to the related party acquisition rules. Your share of the asset is owned by a related party of the SMSF. In turn, the related party investment restriction applies.

 

As @Bruce4Tax mentioned, your SMSF could reduce or dispose of its share of the property by transferring its ownership to you. To achieve this, you would need to determine the market value of the asset and ensure that you pay the SMSF appropriately.

 

Refer to the valuation guidelines for self-managed super funds page for more information.

 

Hope this helps.

 

Thanks,

 

ChrisR