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If I purchase an investment property through my SMSF and then on reaching retirement, I choose to wind up the superfund and transfer the house to myself for Owner Occupation, do I need to pay Stamp Duty on the transfer to myself, or is this exempt.?

3 years ago

Responses

Hi Ken,

Off the top of my head I’m not certain if Stamp Duty is payable or not. The rules differ from state to state.

I know you can transfer from person name into the SMSF & provided certain conditions are met you can get an exemption. I’m just not certain of the other way around.

What I typically see happening upon retirement is that you sell your existing principal residence (tax free) then use this money to purchase the property from your SMSF. Stamp duty is definitely payable in this scenario but it has the benefit of making sure there is money in your SMSF to live off in retirement. They way you have described takes all your money out of super.

Regards
James

Hi guys,

You cannot transfer assets into your super fund. The exemptions are publicly traded shares and units and COMMERCIAL real property.

You can transfer a property out of a SMSF to a member(s), which will trigger capital gains tax for the fund unless they fund is 100% in pension mode and stamp duty for the purchaser. There are no concessions for a SMSF, sorry.

In most cases people take into account the CGT savings on the property and are happy to take the hit in stamp duty.

And who knows? perhaps one of these days the states WILL ACTUALLY abolish all those state taxes that were supposed to go when GST came into being, like they were supposed to do 15 years ago!!!!!!!

9 months ago

I am considering buying the small commercial property with SMSF through Bare Trustee / Bare Trust to run my own business. I have the 60% deposit and would like to borrow 40% from Bank in order to purchase the property. Under the current law I am not able to lease the commercial property to someone else as this will be considered as investment property.

What will happen to this commercial property when I reach the retirement age and when the loan is paid out? Can I sell or lease this property when I retire ?

Best

Gordon

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