Commercial Property and SMSF with a twist

[bagg]

Hi again all,

An SMSF question this time - I have done the searches but I can't find exactly what I'm looking for!

I have an IP at present in my name. It is rented out currently. I am considering declaring the property to be a medical practice and using it as such - I'm a medico. Can I then set up SMSF and have it buy the (now commercial) property from myself?

What do you think? Does this respect the sole purpose rule and also I'm assuming that a medical practice can pass some test as an acceptable commercial property.

While i'm at it, I have another IP in a trust structure - if I use this as my medical rooms are there any other probs with the SMSF obtaining this? Might actually be easier if belongs to the trust rather than me?


Thanks,

bagg

 

[Pat]

Hi Bagg,

First you would need the council to OK the premises as a medical practice and receive a commercial permit. Then you would be able to transfer the property into your SMSF and potentially not pay any stamp duty if the property is in WA or Victoria.

If the sole purpose of this is to provide for retirement funds then this can be an excellent way of holding commercial property.

There may also be some Capital Gains Tax concessions that could be in your favour as well.

 

[bagg]

Thanks very much Pat. I'll get my own advice now but its really helpful to get the good oil as a starting point.

Thanks again,

bagg