Q: I bought a property a few years ago through my self managed super fund, however at the time I was just short of the funds required to purchase so made up the difference and ended up with a small percentage ownership in the property. The superfund now has enough funds to buy my share out but I was told that I would have to sell the property to get my funds back which I don’t want to do. Why can’t I just sell the percentage of the property to the superfund so I can get back the money I put in?
A: The SIS Act 1993 is very clear about funds used to acquire property must come from your SMSF. Every single dollar.
May I suggest you contact Liam Shorte at Verante for guidance on “where to from here”. Liam is a subject matter expert.