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active assets

Discussion in 'Superannuation, SMSF & Personal Insurance' started by morts, 4th Feb, 2008.

  1. morts

    morts New Member

    3rd Feb, 2008
    I am currently investigating establishing a smsf and am weighing up various options.

    I run a real estate business (registered business) that is owned by a company. That same company is the trustee for a discretionary trust that is used to develop property.

    The properties in the trust are treated as stock and not subject to cgt and as such I would consider them active assets, similar to a commercial property that I may run a business from. I understand that active assets can be transferred into a smsf and I am considering this for some 'keeper' properties.

    I would be interested in any thoughts/opinions that the board may have.
  2. Rob G.

    Rob G. Well-Known Member

    6th Jun, 2007
    Melbourne, VIC
    Active asset concessions are for CGT, not for trading stock as far as I am aware.

    Trading stock disposal will be deemed at market value - don't know about any concessions here for super contributions either.

    Not sure whether the ex-trading stock would qualify as business real property as the intention of the legislation is to encourage small business owners to contribute the premises within they conduct their business.

    If it fails to be business real property then it will be deemed in-house assets !!!

    Need to get some specific advice.