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.
"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2