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tax offset in SMSF

Discussion in 'Superannuation, SMSF & Personal Insurance' started by Wollangambe, 6th Sep, 2011.

  1. Wollangambe

    Wollangambe New Member

    Joined:
    6th Sep, 2011
    Posts:
    2
    Location:
    Sydney,NSW
    I am a director of a company used previously to trade in the building industry. the business was wound up but the company is still registered, albeit dormant. It has tax credits of $90,000.00 attached to it. If I use this company as a corporate trustee of a self managed super fund I propose to set up (I know another director would need to be appointed), can the tax credits offset any future capital gains tax accrued by trading the direct share investments within the smsf? Thank you in advance.
     
  2. Terryw

    Terryw Well-Known Member

    Joined:
    9th Jun, 2006
    Posts:
    653
    Location:
    Sydney
    No, because the SMSF and the company are separate tax entities and have separate tax returns.
     
  3. jorgon

    jorgon Active Member

    Joined:
    28th May, 2011
    Posts:
    25
    Location:
    Brisbane
    Hi Wollangambe
    I'm afraid not.
    The company's assets and tax credits are its own property, whereas the assets it holds as trustee of the superannuation fund are the assets of the fund. So there are different owners.
    It is true that the company would have to pay the tax owed by the fund arising from capital gains in the fund, but it would no be able to offset its own tax credit because it is holding that tax credit in a different legal capacity.