Transferring Your Property To Your Super Fund
Often superannuation can be a great structure for people to hold their property in. It is usually a lower tax environment and offers protection against bankruptcy.
But sometimes, you may feel that a property that you own in your own name would be better off in your SMSF. In that case, what do you need to consider if you would like to move the property into your SMSF?
The Rules
Only certain properties can be transferred to your super fund. Usually, only a property that is wholly and exclusively used in one or more businesses is able to be transferred to your own SMSF. For example, if you were in possession of a residential rental property, you would not be able to move it into your super fund. A shop on the other hand could be transferred into a super fund.
Transferring an eligible property to an SMSF is considered a sale, which means that capital gains tax (CGT) may apply. You need to consider what your CGT obligations may be and if you are entitled to any small business concessions to reduce that gain.
You will also need to consider whether stamp duty is applicable to the property. Some states (Victoria, NSW & WA) offer concessions on transferring property from your own name to your SMSF in certain circumstances. And of course, SA has no stamp duty on commercial property.
You may also need to undertake financial modelling to confirm that you would be financially better off transferring your property to your SMSF. If this is something that you would like to do, please contact us so that we can assist you.
