Friday, November 7, 2014

Buy your Business (Premises) through your SMSF





Are you a business owner?



Do you have an SMSF?


Did you know that unlike residential property, you can purchase commercial property that is in use by a fund member through your SMSF?



What does that mean?


If you’re a business owner you can buy the commercial property in which you do business.



Why would you want to do that?


To put the asset into a lower tax environment. And to put your asset into a protected environment to provide income for your future retirement.



What you’ll need


You’ll need a fair amount in you super fund. Banks will usually require a 35% deposit for your own commercial premises. As mentioned earlier, you’ll also need some solid advice as to whether or not this particular strategy is right for you.



What are the benefits?


Well as with any asset in your super, there are potential long term tax and superannuation benefits. Aside from this, within an SMSF the interest on the loan may be claimed, capital gains when you sell may be significantly minimised. Also if you are in pension phase the fund will pay no tax on the rental income.



The door might be closing


An interim report of the Australian government’s inquiry into the financial system is calling for a review of guidelines around leveraging this strategy source: http://fsi.gov.au/files/2014/07/FSI_Report_Final_Reduced20140715.pdf



So time may be of the essence. If this is an opportunity that you think might be good for you contact us today so we may assist you looking after your all round financial health.

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