All Topics / General Property / Poisoned property

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  • Profile photo of cana05cana05
    Participant
    @cana05
    Join Date: 2004
    Post Count: 10
    October 27, 2004 - 11:02 am

    Can anyone explain this in plain English

    “Poison property is investment property you own that may never be transferred to your superannuation fund or allocated pension fund at any time in the future. If you acquire a residential property in your own name, jointly with your spouse, in a discretionary trust or a company then the property can’t be transferred to your superfund or a unit trust in which your superfund owns units”.

    Thanks

    Profile photo of Fast LaneFast Lane
    Member
    @fast-lane
    Join Date: 2004
    Post Count: 527
    October 27, 2004 - 12:23 pm

    This means that if you want your super fund to own a property, only your super fund can buy it. You cant transfer ownership of a property to your super fund.

    Hope this helps…G7

    Profile photo of SuperTedSuperTed
    Member
    @superted
    Join Date: 2003
    Post Count: 205
    October 28, 2004 - 3:12 am

    I think you and your super fund can own “units” (different %’s of ownership) in the property but the fund must not borrow to fund its side of the purchase.

    Transfer.. The property cannot even be sold to the superfund at a commercial rate, once youve owned it.

    Best to give an accountant some money and ask them… ;-)

    “Never argue with an idiot, as they will bring you down to their level and beat you with experience”

    Profile photo of ZimonyaZimonya
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    @zimonya
    Join Date: 2003
    Post Count: 17
    October 28, 2004 - 7:51 am

    Hi,

    I think that I know where you got the concept – the Chris Batten website. From what I understood it is a term he has coined for any property that is not bought in a unit trust structure as the gist I get is this is the only structure in which you can transfer the ownership of the property into a super fund or pension fund. I hope this helps but I probably did not understand it entirely correctly from the website.[blink]

    Zimonya

    Profile photo of DerekDerek
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    @derek
    Join Date: 2004
    Post Count: 3,544
    October 28, 2004 - 9:17 am

    Hi Cana,

    A SMSF cannot own the house that you are residing in and as such it will always be out of the reach of your SMSF. Nor can a SMSF purchase investment property from you that you currently own – which is what G7 was explaining.

    By way of comparison a SMSF can own the commercial premises that you operate a business out of.

    Derek
    [email protected]

    Property Investment Support Available. Ongoing and never stopping. PM welcome.

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213
    October 30, 2004 - 10:05 am

    I think what Chris Batten is getting at is for you to structure your purchase of property that gives you the great flexibility in tax minimisation and asset protection. If you use a unit trust and discretionary trust strucuture it gives the added benefit of allowing you to transfer a property to your SMSF without paying stamp duty or CGT. You may not ever do it, but you never know, so best not to purchase in a way that poisions this idea.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

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