Complex Superannuation Strategies

Business Strategies

Business Real Property into a SMSF

If a property you own is used for business purposes, then you may be able to sell or transfer it into a self-managed super fund. 

You must consider a range of issues, including;

  • whether the super fund can afford the property (if being acquired) although you may be able to set up a specific limited recourse borrowing if there is not enough money in the fund
  • whether you can afford to transfer the property as a contribution (subject to restrictions with concessional and non-concessional cap limits)
  • whether capital gains tax will be payable on the transfer
  • the market valuation of the property, and
  • whether the super fund will have adequate diversity and liquidity by owning such a (typically) large asset. 

The fund’s stated investment strategy must allow for ownership of commercial property and any borrowing if required.