LRBAs and related party leases: what you need to know.
07 Nov 14 |
RETIREMENT & ESTATE PLANNING BULLETIN
Issue: Vol 17 No 8 September 2014
Pages: pp 129-131
A common strategy implemented by business clients is to acquire business real property via their SMSF and then lease this property to a related party. Borrowings are often used to finance the acquisition.
Complexity arises when the related party tenant wishes to make changes or improvements to the property.
Does the installation of a fit out contravene the prohibition against related party acquisitions? Do any improvements give rise to a new asset for SMSF borrowing purposes? Does the value of the fit out count as a contribution?
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Daniel of DBA Lawyers, Daniel is one of Australia’s leading SMSF lawyers and has worked predominantly in the SMSF, tax and related fields for over 30 years. He is a regular presenter on SMSF topics and has published extensively in professional journals including contributing a monthly article on SMSFs to the Taxation in Australia and other media. Dan is a member of the ATO’s Superannuation Industry Relationship Network (SIRN), the Chair of the Tax Institute’s National Superannuation Committee, a member of the Law Institute of Victoria’s Tax Committee, and is involved with a number of other tax and SMSF committees and discussion groups. Dan presents on the subject Taxation of Superannuation at the University of Melbourne’s Master of Laws/Tax program. Dan is also a Specialist SMSF Advisor.
- Current at
29 May 2019
Tina is a Consultant for DBA Lawyers.
- Current at
22 July 2013