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  1. ActiveTrade

    ActiveTrade Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    69
    Location:
    Sydney
    Hi all, just wandering if one's SMSF can purchase private shares ?
     
  2. Rob G

    Rob G Well-Known Member

    Joined:
    16th Oct, 2015
    Posts:
    966
    Location:
    Melbourne
    Do you mean shares in a private company ?

    Rob
     
  3. ActiveTrade

    ActiveTrade Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    69
    Location:
    Sydney
    Yes. I currently hold shares in a private company. Plans are for the company to float at some point. Not yet.
     
  4. Nigel Ward

    Nigel Ward Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    989
    Yes and no.

    Yes, if it's consistent with your investment strategy.:)
    BUT
    No if it's from you or another related party of the super fund trustee (which you post suggests) :(
    UNLESS
    you fall below the 5% in-house asset test:confused:

    Unfortunately, unlisted shares do not fall within the in-specie transfer exemptions from related parties, unlike listed shares and interests in managed funds.:rolleyes:

    Potential penalty is a year in jail... :eek:

    Fund stuff this super eh? :cool: Please seek specialist advice on all proposed transactions involving super. The consequences of rendering your fund non-compliant can be catastrophic from a tax perspective (and you might do time in the big house...)