Hi Amy… It could be ok but certainly the SMSF cannot use further borrowings to make Improvements to any property subject to a limited recourse borrowing arrangement (ie a Smsf property subject to a borrowing). also, you need to ensure that the improvement does not change the character or nature of the property… Eg you cannot subdivide or…[Read more]

Hi Bullion,

You will not get a full main residence exemption even if you build a house and live in it… That is because the main residence exemption can only apply to land purchased within 4 years of the property being constructed on it. Hence, you will always have a cgt event on the land as you have owned the land for more than 4 years. Once a…[Read more]

Hi guys… Unless your father purchased the land before Sept 1985, the transfer of the lots to the kids will trigger capital gains tax for your father. Even if there is a house on the land, which has been your dad's main residence, the main residence exemption will not be available where post cgt land is subdivided and separately sold. Most…[Read more]

That ruling you talk about is where borrowing is used by your smsf to purchase a property (via a limited recourse borrowing arrangement).  The ruling covers whether your smsf can undertake further borrowing for "repairs" where the property is subject to an existing borrowing arrangement. If the repairs are minor, I would expect the smsf can use…[Read more]