Self-Managed Super Funds


Investment decisions and rules

Business real property

Example

Conrad owns a hotel worth $800,000 through his company Hotels Pty Ltd. He is considering transferring the hotel to his SMSF. 

He has several options: 

  • Sell the hotel to the SMSF. The SMSF could borrow if it does not have enough money to buy the hotel. 
  • Sell part of the hotel to the SMSF. Hotel Pty Ltd and the SMSF can own the hotel as tenants in common. 
  • Transfer the hotel to the SMSF in one or more in-specie contributions, subject to contribution caps – an in-specie contribution is a contribution made other than in the form of cash.

Before transferring ownership, Conrad should also consider the costs to transfer the property into an SMSF (e.g. stamp duty and capital gains tax).