Complex Superannuation Strategies

Business Strategies

Business Real Property into a SMSF

If a property you own is used for business purposes, then you may be able to sell or transfer it into your self-managed super fund. You may decide to contribute the asset into your super fund as a non-cash concessional or non-concessional contribution. Non-cash contributions are known as in-specie contributions.

You must consider a range of issues, including;

  • whether the super fund can afford to purchase the property, although you may be able to set up a specific limited recourse borrowing if there is not enough money available in the fund.
  • whether you can afford to transfer the property as a contribution (subject to restrictions with concessional and non-concessional cap limits).
  • whether capital gains tax will be payable by the member on the transfer (sale) of the asset to their SMSF.
  • the market valuation of the property, and
  • whether the super fund will have adequate diversity and liquidity by owning such a (typically) large asset. 

The fund’s stated investment strategy must allow for ownership of commercial property and any borrowing if required.