Business real property

[redwing]

A friend (Mr X) asked today for thoughts on the below as he's had conflicting advice from 2 different accountants (his and Mr A's)

Wife X owns Commercial Property 1 which is rented to company of which Mr A, Mr B and Mr X are directors of

Can Mr and Mrs X's SMSF purchase Commercial Property 1?

Wife X owns Commercial Property 2 which is rented to an unrelated company

Can Mr and Mrs X's SMSF purchase Commercial Property 2?

My thought's were yes to both

 

[Terry_w]

It is likely the answer is 'yes' as both would be classed as 'business real property'

 

[coastymike]

Id be saying yes as well provide both are commercial real property.

 

[Scott No Mates]

Providing they aren't residential there shouldn't be any issues.

 

[Terry_w]

Residential property could be 'business real property' in certain situations. A house that is used as a doctors surgery for example.

 

[coastymike]

And residential property owned in a unit trust with no debr would be ok as well provided the units were transfereed.

 

[redwing]

Thanks Terry & Mike

I'm looking for a link now on the ATO site to give him also

 

[Terry_w]

Thanks Terry & Mike

I'm looking for a link now on the ATO site to give him also

http://www.ato.gov.au/Super/Self-ma...ments/What-does-business-real-property-mean-/

 

[Property Hoarde]

I am yes to both as well as long there is an on going business running from the properties.

I have had one or two residential properties be business real property.

 

[Redwood]

Adding my 2 cents albiet a little late, yes agree on both counts as business real property