Pros & Cons Of Arranging SMSF To Your Business Premises Without Thinking The Strategy
We actually love this strategy of Super Fund Outsourcing, but there are positives and negatives to this situation and you will need guidance from your legal, accounting and SMSF Specialist Advisor. Many owners of small to medium enterprises use this as an effective strategy but others do a half-baked job and leave themselves exposed.
- Direct control of your super investments and a real understanding of where your money is invested.
- The fund will pay only 15% tax on commercial rent paid
- If the premises is sold no capital gains tax may be applicable once you are in pension phase and 15% or less if earlier.
- You can be your own landlord with secured tenancy which allows you greater certainty when fitting out or installing equipment.
- Keeps liquidity in the business to fund other costs.
- There are thousands of dollars in setup costs and there are sometimes higher fees involved in getting a loan through your SMSF.
- If a member of the fund dies without the proper insurance in place the fund may have to pay out death benefits leading to a rushed sale of the commercial premises.
- If sold to a third-party then there is a possible loss of tenancy to the business which could destroy it.
- There are strategies that can be built to avoid the cons, it is best to speak to an adviser so that they can see what is best for your personal situation.
Posted on August 25, 2014, in Accounting, outsource, Outsourcing, smsf and tagged Accounting outsourcing, Accounting outsourcing australia, accounting outsourcing services, Australian accounting outsourcing, outsourcing accounting India, outsourcing accounting work, SMSF audit. Bookmark the permalink. Leave a comment.