Hi All,
I know this is not new and many have invested in US property for a number of years. Also I know that many have done this via the use of a SMSF.
I have a few questions that some experts may be able to answer:
1 - If you have invested directly on US property via your SMSF what are the tax implications over there? i.e aside form the state tax which are different state by state, what federal tax tax to you pay in the US for you SMSF. Is the SMSF treated as a foreign corporation and if so what tax to you pay? Obviously you will receive a tax credits back here in Australia.
2 - Has anyone purchased US property for their SMSF via the use of an LLC for asset protection? If so how did you get around the in-house-rule. There are many internet opinions about this and many say that it can be done, BUT, has anyone confirmed with the ATO in writing? has anyone/any accountant/tax lawyer, obtained a tax ruling from the ATO to state that it is ok and an SMSF can indeed purchase property in the US using the LLC for asset protection without breaching the in-house rule?
This is a very important question because a lot of SMSF investors have purchased property in the US via an LLC and are now in breach of the in-house-rule. Also I believe that if the SMSF gets audited by the ATO and you are in breach of this rule there are severe penalties and you could loose up to 75% of ALL the assets owned by the SMSF.
I hope someone out there can provide, or point me to, a 100% accurate answer based on tax law/ATO ruling.
Many Thanks in advance
I know this is not new and many have invested in US property for a number of years. Also I know that many have done this via the use of a SMSF.
I have a few questions that some experts may be able to answer:
1 - If you have invested directly on US property via your SMSF what are the tax implications over there? i.e aside form the state tax which are different state by state, what federal tax tax to you pay in the US for you SMSF. Is the SMSF treated as a foreign corporation and if so what tax to you pay? Obviously you will receive a tax credits back here in Australia.
2 - Has anyone purchased US property for their SMSF via the use of an LLC for asset protection? If so how did you get around the in-house-rule. There are many internet opinions about this and many say that it can be done, BUT, has anyone confirmed with the ATO in writing? has anyone/any accountant/tax lawyer, obtained a tax ruling from the ATO to state that it is ok and an SMSF can indeed purchase property in the US using the LLC for asset protection without breaching the in-house rule?
This is a very important question because a lot of SMSF investors have purchased property in the US via an LLC and are now in breach of the in-house-rule. Also I believe that if the SMSF gets audited by the ATO and you are in breach of this rule there are severe penalties and you could loose up to 75% of ALL the assets owned by the SMSF.
I hope someone out there can provide, or point me to, a 100% accurate answer based on tax law/ATO ruling.
Many Thanks in advance
