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SMSF

Discussion in 'Accounting, Tax & Legal' started by ActiveTrade, 24th Nov, 2008.

  1. ActiveTrade

    ActiveTrade Well-Known Member

    Joined:
    5th Apr, 2008
    Posts:
    78
    Location:
    Sydney
    Hi all, just wandering if one's SMSF can purchase private shares ?
     
  2. Rob G.

    Rob G. Well-Known Member

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    6th Jun, 2007
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    Location:
    Melbourne, VIC
    Do you mean shares in a private company ?

    Rob
     
  3. ActiveTrade

    ActiveTrade Well-Known Member

    Joined:
    5th Apr, 2008
    Posts:
    78
    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 Team InvestEd

    Joined:
    10th Jun, 2005
    Posts:
    1,172
    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...)