Related party property transfers
Residents of NSW, Western Australia and Victoria have the opportunity to transfer business real property they hold in their personal name into their self managed super fund and pay little or no state duty on the transfer. Some states require the fund to purchase the property, which it can do by borrowing if it wishes. In NSW it can be purchased by the fund (with or without a loan) or transferred as an in-specie contribution or partly purchased and partly contributed. These transactions are full of traps for the unwary so you would be well advised to use the tailored documentation we have honed from the many we’ve handled for clients.
Advice on how to avoid double duty going in and more duty coming out, and relevant declarations and correspondence to help you with your local state duties office.
A full explanation of how the transaction works so as to avoid problems, confirmation of your fund’s compliance with the relevant requirements, the holding trust deed and all the necessary company resolutions plus a service desk for procedural problems you might have with implementing the loan arrangements.
Guides to SMSF Gearing
All the important records evidencing the fund’s decision and its directions to the holding trustee to lease the property and secure the investment return.
Agreements and security documents for all parties to a related party loan plus implementation including registration with state land titles registers.
A new set of documents for a new loan permitted by the legislation, but subject to ATO conditions so seek advice to be sure.
Advice, documents and implementation of unwinding the loan and transferring the property to the super fund.