A friend of mine was just trying to explain to me how you can turn a investment property into your superanuation fund and then any of the money u add to it yourself is tax deductable.
Is this correct or can anyone point me to some where i can learn more about it..
Yes, you can set up your own super fund. It is relatively easy and can be done with the help of your accountant. I don’t think that money you personally put in is fully tax deductible, but rather, it is taxed at a lower rate. Does anybody else out there know exactly?? Your accountant can set you straight with that though.
Regards,
SteveReally Steve ?? Sheesh, you learn something everyday !! [
]Thanks for the tip, i’ll have to take that up with my accountant and see how it works and what benefits there are… [
]Cheers,
Paul…“The only thing you get from looking backwards is a sore neck…”
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Couple of things to bear in mind with that strategy.
1) You are unable to purchase a property in your Super Fund from a related party – You.
2) If if it was not you but a 3rd party stamp duty would be payable.
3) Your Super Fund is not able to borrow to fund the purchase so you need to have sufficient monies in the fund to pay cash for it.
4) Super Funds normally pay tax at 15% unless the Superanuation Surchage applies. So treated slightly more favourable than a Pty Lty structure but less flexible.
5) Super Funds are not able to carry on a business so you can’t buy and sell as you would if you were trading property or renovating privately.
6)7)& Well i could go on.
Simple answer is beware as the Trustees are liable for breaching the Superanuation Act and the penalties are not light these days.Cheers Richard
[email protected]
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
(-0_0-)Couple of things to bear in mind with that strategy.
1) You are unable to purchase a property in your Super Fund from a related party – You.
2) If if it was not you but a 3rd party stamp duty would be payable.
3) Your Super Fund is not able to borrow to fund the purchase so you need to have sufficient monies in the fund to pay cash for it.
4) Super Funds normally pay tax at 15% unless the Superanuation Surchage applies. So treated slightly more favourable than a Pty Lty structure but less flexible.
5) Super Funds are not able to carry on a business so you can’t buy and sell as you would if you were trading property or renovating privately.
6)7)& Well i could go on.
Simple answer is beware as the Trustees are liable for breaching the Superanuation Act and the penalties are not light these days.Cheers Richard
[email protected]
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundHi there,
So your Super fund cannot actively trade shares?
Kind regards,
Brent1
Brent
Trading shares would be acceptable if you can prove what your original objectives where in your initial investment strategy.
Derivatives would be a different matter unless you are licensed and could convince the ATO (if required).
We had our Super Fund audited less than 6 months and trade both shares and derivatives but as a licensed dealer in securities were able to convince the auditors that the level of risk was acceptable.
A Super Fund is however not able to be seen as carrying on a business.
Cheers Richard
[email protected]
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
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Well i could go on.
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