Does your business rent a commercial premise which is owned by you and you think it would be a great investment for your SMSF?

Well, the SMSF could buy it from you.  The rents are assessed to the SMSF at a 15% tax rate instead of possibly the highest rate of 45%.

Should the property be sold in the future and the property is supporting a pension for a member in pension phase, then there would be 0 taxes on the capital gain.

The SMSF provides an excellent vehicle to protect your assets  in case a litigator had a beef against you, together with future succession planning opportunities as a SMSF never dies.  Remember the 80 year perpetuity period that applies to trusts—doesn’t apply to SMSF’s.

Are you experiencing high tax bills because your income is taxed at the highest marginal rate?

Maybe you could salary sacrifice up to your concessional contribution cap of $25,000, or $50,000 if you are over 50 (and with a balance of less than $500,000 after June 2012).

However, what if the trustees have invested in something like an NRAS property with the tax credits in the fund of $9,524.00 which absorbs the 15% tax on contributions, then using an “over contribution” strategy (where the member increases the salary sacrifice over their cap) the 31% tax attracted by the strategy results in a lower tax paid than if the extra contribution was taxed at 45%.

Please contact our SMSF specialist advisors for these and other cutting edge strategies.

See also:

• Wealth Creation Plan
• Protect Your Assets
• Costs of Maintaining
• SMSF Audit
• SMSF Borrowing