Buy my IP through SMSF

Discussion in 'Innovative Techniques' started by foxyleemoo, 23rd Apr, 2015.

  1. foxyleemoo

    foxyleemoo Member

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    Hi. Does anyone know of a way to legally buy an IP I have already purchased using SMSF?
     
  2. pickle pickle

    pickle pickle Member

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    The superfund can sell an ip held in the superfund to its members at market value.
     
  3. Coota9

    Coota9 Member

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    Would that not trigger stamp duty fees..
     
  4. Terry_w

    Terry_w Member

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    You want to buy a property that is currently owned by your SMSF?


    I don't think there are any restrictions on a SMSF selling property to a member as long as it is done at market value. CGT would apply, but there could be stamp duty exemptions depending on a few things.

    But why?
     
  5. foxyleemoo

    foxyleemoo Member

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    Sorry.. to clarify. I (the bank) already own the IP. I would like to buy it using my SMSF.
     
  6. Paul@PFI

    Paul@PFI Tax, SMSF & Planning

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    Depends on your question....I believe you are asking "Can your SMSF legally buy an IP I already own".

    The answer is likely to be no.
    s66 of the Superannuation Industry (Supervision) Act 1993 prevents a fund from acquiring any investment from a member, relative or associate unless it is otherwise permitted. There is an exception for listed shares at market value and units in a unit trust that is not geared subject to a load of stringent rules (SISReg 13.22C)

    If you can switch the loan security to say your own home this may work BUT its would need advice. Its a complex area of super law. The SMSF cant use a limited recourse loan if you were thinking that. Its a prohibited acquisition.

    s66 does allow business real property. However if its a residential investment property you cannot do this. No matter what. Its a silly rule at times but it has a purpose.

    There is also an avoidance rule if you try to do this in other ways.

    However if a unrelated person's SMSF wants to buy your IP there is no concern.
     
  7. Terry_w

    Terry_w Member

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    You mean you would like to sell it to your SMSF.

    As Paul said = not allowable unless business real property.
     
  8. Redwood

    Redwood Member

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    Hi there foxy,

    A question many people ask, you cannot purchase residential property of a member or RP, unless it satisfies the definition of Business Real Property, this is not just limited to commercial property, there are some strategies that can be utilised including if the residential property is part of a development where you are the developer. SMSFR 2009/1 is the reference point.

    Cheers, Ivan
     
  9. Bare Trust Deed

    Bare Trust Deed Member

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    Super Fund acquiring assets from a related party

    Hey all,

    As mentioned, previously, typically not.

    You can't acquire assets for your fund from a related party of your fund, unless the asset is acquired at market value and is:

    - a listed security (for example, shares, units or bonds listed on an approved stock exchange)

    - business real property

    - an in-house asset, provided the market value of your fund?s in-house assets does not exceed 5% of the total market value of your fund's assets

    - an asset specifically excluded from being an in-house asset.

    https://www.ato.gov.au/Super/Self-m...tments/Acquiring-assets-from-related-parties/

    Hope this helps.
     
    Last edited by a moderator: 14th May, 2015