In my opinion establishment costs are not borrowing costs. The fact that the structure was formed so that the SMSF can borrow is totally irrelevant - they are still establishment costs.
I would suggest that you get your accountant (it is not an auditor issue) to provide some ruling/reference...
Good solution coastymike but obviously can be only be used if there is a related or friendly employer.
The reality is that set-up costs are incurred BEFORE the fund is established. So this begs the question of how you would even get the expense into the the SMSF anyway?
Reimbursing the member...
No idea what you are referring to with "the invoice is broken" and "depends".
It seems clear that the ATO sees setup costs as capital in nature - see IT 2672.
Can you please provide a reference for your contention that costs relating to setting up a structure to allow an SMSF to borrow are...
Setting up a company to act as trustee for an SMSF is NOT "Prepaid Borrowing Expenses".
It also does not qualify as black hole expenditure (ITAA 97 s40-880 deduction usually written off over 5 years) because a SMSF would not normally meet the requirement of carrying on a business.
My...
