Tax with Max: Transferring a holiday unit to an SMSF

Understanding the rules on SMSF property purchases and renting out a principal residence.

Summary: An investor who owns a holiday unit may wish to transfer it to their SMSF in a tax-effective way. Regulations covering superannuation mean that the only property an SMSF can purchase from a member is business real property. The property must be used wholly and exclusively in one or more businesses, but this condition can be met if a specific part of the property where the business is carried on contains a residential dwelling.

Key take-out: If a holiday unit does qualify as business real property, transferring it into an SMSF would be classed as a sale and subject to capital gains tax.


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