SMSF subdivide enquiry?

[nowork]

Hi Guys,

I was wondering if you could help me with the below example...

1. SMSF purchases a house on a large block with a loan.
2. SMSF has paid out loan, SMSF no longer has a loan and fully owns the house.
3. Council changes Zoning for land and allows block to be split for another house/unit to be built on it.

Can the SMSF now split the block (using its own cash/no loan) and sell the newly created empty block to say myself as it no longer has a loan attached to it?

I keep reading that you cannot do much with loans attached and you can sell assets from the SMSF to yourself, but wasn't sure what you can do with no loan attached and subdividing.

Any help would be greatly appreciated...


Cheers...

 

[Player]

Hi Guys,

I was wondering if you could help me with the below example...

1. SMSF purchases a house on a large block with a loan.
2. SMSF has paid out loan, SMSF no longer has a loan and fully owns the house.
3. Council changes Zoning for land and allows block to be split for another house/unit to be built on it.

Can the SMSF now split the block (using its own cash/no loan)

As long as your trust deed allows it

and sell the newly created empty block to say myself as it no longer has a loan attached to it?

That sounds like a related party transaction and would dare say that it may contravene the SIS act/rules


I keep reading that you cannot do much with loans attached and you can sell assets from the SMSF to yourself, but wasn't sure what you can do with no loan attached and subdividing.

Any help would be greatly appreciated...


Cheers...

Best check with your accountant and/or give the ATO a call.

 

[Aaron_C]

Please check with an SMSF specialist. I would have no idea where to begin with these things.