Tax Planning Strategy 156 | Using a SMSF to Undertake Property Development
Undertaking a property development in a SMSF can result in zero tax payable if the fund is in the pension phase (or 15% if the fund is in the accumulation phase).
- The arm’s length rules under S.109.
- The sole purpose test under S.62.
- Complies with the investment strategy of the fund.
- That any borrowings are for a single acquirable asset and comply with S.67A.
- Assets are not acquired from related parties and breach S.66.
Talk to your accountant or tax agent to ensure compliance.
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