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SMSF - running a business from residential proptery

Discussion in 'Superannuation, SMSF & Personal Insurance' started by shrek, 21st Jun, 2009.

  1. shrek

    shrek Member

    21st Jun, 2009

    I am considering looking into a SMSF and buying a residentail property. My situation is that my wife have a good amount in super so thus why we are looking into this.

    We also both legally and offically work from home under our employment contracts so I am wondering if we can by a residential property with a super and live in this as we are also carrying out a business at the same time from the house? This would be via two seperate dedicated offices in the house.

    Just wondering if anything thinks this is possible?

  2. Superman

    Superman Well-Known Member

    6th Nov, 2007
    Gold Coast, QLD
    I would look at the ATO's SMSFR 2008/D3

    They use the term 'wholly and exclusively' used in a business. You are saying you and your wife are employees that work from home so technically there is no business, and secondly the property would be predominantly used as your principle residence - which indicates it wouldn't be 'wholly and exclusively' used in a business.

    So to answer your question - NO it is not possible.
  3. Jenni

    Jenni Active Member

    27th May, 2009
    Brisbane, Qld
    Superman's reference to the tax ruling seems to be irrelevant as it relates to transferring an already owned business property into super.

    If, as you state, you plan to buy the dual purpose property (presumably from an arm's length third party), your problem is with the sole purpose test and in-house assets rules and unless the property is <5% of the value of the fund the answer is NO you can't live in it (or part of it). Also, working from home under employment contracts is not considered to be running a business.

    Good Luck