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Hi last year I began a TRIS from my super fund. During the year I decided to draw more than the minimum allowable and now with the rule changes I have decided to stop the TRIS. These decisions are made by me and then my accountant charges me to produce paperwork from me to my SMSF requesting what I want. It is a round about process and not cheap. Is there a requirement that certain forms be used or can I just write a letter to my SMSF expressing what I want to happen? If there are specific forms can I access them somewhere?
I believe that if a person has made only NON-concessional (ie: post tax) contributions to the accumulation phase of a super fund, then those funds will be classed as the "tax-free component" of their fund. Consequently, for account-based pension purposes in the future, the pension will be tax free even if the retiree is between 55 to 59 years of age only (providing they also meet the correct date of birth requirement). However, would the income-earned component (which was taxed at 15% while in the accumulation phase) be also classed as a tax-free component when the account based pension starts? Please clarify this matter. Thank-you.
Hi Max. Regarding Inheritance Tax. I have $1.5 million in a SMSF, with 90% being taxable. My Financial Advisor has suggested I establish a second SMSF and over the next 15 years withdraw the money from the first SMSF and contribute it into the second thereby reducing the Inheritance tax to zero. This strategy would cost approx. $15 - $20000 over that period but would save approx. $225000.00 in tax liability, $45000.00 in the first year alone. My partner/fellow trustee is in a similar situation. What are the implications of such a strategy? Thanks Graeme
My wife and I have an SMSF with each of our accounts in pension mode. I also have a DFRDB and PSS defined benefit pension in my name. I have been provided with the Transfer Balance Credit for both this pensions. Am I correct in assuming that when calculating whether I have breached the $1.6 million limit the balance of my wife's account in the SMSF is not included in this calculation?
Greetings, Downsizing and super contributions for 65+ years. I am wondering if you can let me know whether the new rule for superannuation in regard to downsizing principal dwelling that allows 65+ to contribute the $300000 for each spouse apply to homes sold prior to 1st July 2018. More specifically if you sell your home now with a 12 months settlement would that be acceptable to this ruling. Thanks Jacques
I want to get details of special arrangements in the self managed super fund to be able to purchase a real estate property worth more than $1.6 million
I would like to understand how income tax and CGT are worked out for a SMSF with say $2m of assets, $1.6m of CBA shares in pension phase and $400k of Santos shares in accumulation phase. If the CBA shares had dividend income of $80k and the Santos shares zero income, you would think the income is all tax free as its all in pension phase but I don’t think that’s correct. Is the income proportioned, in this case 25% of 80k taxable given 25% of the combined super balance is in accumulation phase. Similarly are the CBA shares CGT free as they are all in pension phase or are any capital gains proportionally taxed as discussed above. I feel there is a lot of discussion round the $1.6m cap but no one discusses the income tax calculations associated with the changes
I have an SMSF in accumulation phase. Through the fund I have direct-invested in US equities. I submitted the complicated W-8BEN-E form, and as a result my US dividends are taxed in the US at the non-resident alien rate of 15% instead of 30% . What will be the tax treatment of these earnings and the tax-paid here in Australia? What will happen with capital gains (or losses!) if I sell some shares? Thanks.