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- LRBAs and related party leases: what you need to know.
LRBAs and related party leases: what you need to know.
Publication date: 07 Nov 14 | Source: RETIREMENT & ESTATE PLANNING BULLETIN
Issue: Vol 17 No 8 September 2014
Pages: pp 129-131
Abstract:
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 Butler CTA

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