Follow along with the video below to see how to install our site as a web app on your home screen.
Note: This feature may not be available in some browsers.
Let's just say I agree with VFarr and so do some senior lawyers in sydney. more to be revealed later.
Not sure whether I should take your advice vfarr or Westpac and the big law firms? Maybe I should know better but I'm not paid $650 per hour to research it and give advice to the big end of town like the big Tax Lawyers.
Despite all this you are right in that the spirit of the law did not intend this to happen and I believe the giving of personal guarantees will be disallowed by a law amendment.
Ours will be a no guarantee product similar to Calliva with the ability to lend against Residential or Commercial Property.
Let the fun continue.
I lean towards VFarr too, only because the giving of a personal guarantee consititutes a non-arms length transaction with the member. I'm sure there are other complexities at work too.
My SMSF has gone into a joint Venture with one of my Property Trusts. My accountant set this up for me.
So in actual fact it is the Property trust that has borrowed the money and the SMSF invests. It is perfectly legal..
However, their are very strict rules and regulations regarding the management of it and the SMSF is audited by the ATO every year. The ATO is the regulator.
Hi - Mind if I try to clarify things for myself & ask some dumb questions - shoot me down if I've got it wrong . Questions:
- A tax benefit on IP loan interest is possible in SMSF?
- Assuming yes, this negative gearing benefit is at super tax rate of 15%? (not the individual's marginal tax rate, say of 40%)
- There is the ability to salary sacrifice personal contributions towards repayments which then attract only 15% tax
- BIG QUESTION: My work's super company (QSuper) have said if one does use salary sacrifice it has to go into QSuper. Is this correct? Should I check whether this is really the case with my employer or someone?
- Following on from last point, if I have to salary sacrifice into QSuper is there a way to move it out of QSuper into my own SMSF with no additional (or minimal) tax/fee's? Again the object being to take the opportunity to help service the shortfall with pre-tax dollars.
- From a CGT minimisation strategy how does use of a SMSF compare to use of a Trust?
- Can one move an IP into a SMSF a year before retirement without attracting stamp duty or CGT?
- If you don't use a SMSF and have IPs, after one retires is it the case you do have to pay normal tax on income? (i.e. is there any retiree breaks that exist in the tax system already anyway without having to go to a SMSF)
- What is the current thinking re how to incorporate a SMSF into one's IP strategy? For example will it boil down to say, buy 1 or 2 IP's via a SMSF until you reach your servicing capability (which is limited via salary sacrifice arrangement for the shortfall), or buy all IP's via the SMSF (if this is possible without some limits being hit), or don't use SMSF as one can achieve the same results via normal IP/trust mechanisms?