HQB’s Weekly SMSF News – Week 7
When can I use a property owned by my SMSF?
- Residential property cannot be leased to a members of the SMSF or their families (there is a long list of relatives and others prohibited)
- It is possible to visit a residential property owned by your SMSF for essential repairs
- Commercial property in superannuation law is termed ‘business real property’ (BRP)
- BRP can be leased to your business or a business your family controls, but such an arrangement needs to be strictly at ‘arms-length’, including paying fair market rent and striking a commercial lease agreement
- Evidence is important when leasing BRP to a related party, such as rent valuations / appraisals to demonstrate that market value rent has been paid
If you have any questions about owning a property in your SMSF and/or the rules around it, please contact our office.
– James Davis
This article is compiled as a helpful guide for your private information and is subject to copyright. We suggest that you do not act solely on the basis of material contained in this article because items are of general nature only and may be liable to misinterpretation in particular circumstances. We recommend that our advice be sought before acting on any of these crucial areas.