Our LinkedIn Adviser Group

16 June 2014
Comments Comments Off on Our LinkedIn Adviser Group
16 June 2014, Comments Comments Off on Our LinkedIn Adviser Group

LinkedIn forum

We established a LinkedIn Adviser Group for users of our trust deeds, LRBAs, Pensions, Reserves, Family Trusts, other documentation and also training.

To date there are more than 200 pages of intense, strategic discussion.

Shown below is an older discussion on apartments with Grant and Nathan Baker coming to the aid of one of their fellow advisers.

Adviser Question - Business Real Property

If I were to own a holiday unit in a complex of 30 that has short term rental and onsite management - can this be sold to my SMSF? Does it meet the Business Real Property definition?

LinkedIn forum discussion

Sorry but this would not meet the Commissioner's business real property definition. It may be different if you owned eight or more and were running as part of a residential property investment portfolio that amounted to a business due to scale and size.

Grant Abbott

The only way this could satisfy the rules would be if the rental of the unit is pooled with all others, rather than being individually identified with your unit. I believe this is because it then becomes a property that is the subject of a business (of the building manager) rather than one where the manager is just acting as your agent for the letting and maintenance of the property.

Nathan Baker

Nathan is right – see the below Example 19 from SMSFR 2009/1 on Business Real Property

Grant Abbott

SMSFR 2009/1 on Business Real Property
Example 19: Strata titled hotel complex

296 - Mr Chou owns a studio apartment in a strata titled hotel complex. The contract for purchase includes a requirement that the unit is leased for fifteen years to Xin Pty Ltd, hotel business, with rent paid to Mr Chou based on occupancy of the complex. The contract specifies that the freehold owner has no right to reside in the unit during the time it is leased to Xin Pty Ltd.

297 - Mr Chou wishes to sell the unit to his SMSF.

298 - The real property is used wholly and exclusively in Xin Pty Ltd's hotel business and is business real property of Mr Chou for the purposes of acquisition. However, if Mr Chou or a related party of the SMSF intended to stay in the unit at any time, there may be in-house asset implications.

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