Transfer land to SMSF then build

[Paul j F]

We've had feasability study done on subidividing our PPOR. Result was 'Excellent' development potential' with 'Good' profit potential.

Plan is to get plans/permits etc approved then sell the rear (vacant lot) to the SMSF leaving the SMSF to fund the build. Main reason behind this is to essentially get the rear lot into another entity but by selling it vacant reduce SD. Can SMSF buy vacant land and build?.. Trying to guage the likelihood of it before I approach an accountant to set it up.

 

[Bats]

It is my understanding that any purchases made by the SMSF must be from 'unrelated parties' ie you cannot sell your property to your SMSF.

Sorry

 

[RPI]

Sorry, can't sell to your SMSF.

 

[Terry_w]

That is right, unless it is 'business real property' then you cannot sell to your SMSF.

 

[DaveM]

That is right, unless it is 'business real property' then you cannot sell to your SMSF.

But if its bought in a fixed unit trust the units can be transferred to the SMSF?

 

[Terry_w]

But if its bought in a fixed unit trust the units can be transferred to the SMSF?

Yes, in most cases, because of SIS Reg 13.22C

 

[Scott No Mates]

Putting the double/triple stamp duty payable issue aside, would it still be possible to transfer to a unit trust then to an smsf? Otherwise I would go for the cream under the current ownership.

 

[Terry_w]

Putting the double/triple stamp duty payable issue aside, would it still be possible to transfer to a unit trust then to an smsf? Otherwise I would go for the cream under the current ownership.

No. There are provisions in the SIS Act to prevent this I think. eg. s66(3) 'Scheme'
http://www.austlii.edu.au/au/legis/cth/consol_act/sia1993473/s66.html