Self Managed Superannuation FundsNEW New ATO Rulings
ATO DRAFT RULING CONFIRMS 2020 POSITION ON PROPERTY RENOVATIONS IN SMSF "We have argued since these rules were introduced that the tax office interpretation was previously restrictive and incorrect in relation to the legislation. We are happy to see the draft Ruling now falls in line with our interpretation and selected advise we have provided clients for some years’.
On 14 September 2011 the ATO released draft Ruling SMSFR 2011/D1 clarifying its views on key issues surrounding borrowing arrangements as they apply to Self Managed Super Funds (‘SMSF’), allowing fund monies to be used to renovate property.
Importantly the ATO has given clarity to concerns of fund trustee’s in regards to repairs, renovations and improvements to properties held in SMSF’s under Limited Recourse borrowing arrangements. It is clear these can now be done within such arrangements. Borrowed monies cannot be used in all cases for such work however other monies within the SMSF can be utilized.
The SMSF Limited Recourse borrowing for purchase of property has seen significant growth in recent years and this draft ruling will help turbo charge this sector of the market.Those SMSF Trustees with an eye for value and desire to obtain significant increase within their superannuation balance through gearing have been given a big tick of approval to get the ball rolling."
Nic Ellis
Principal and Self Managed Superannuation Fund Specialist
To listen in to our recent interview with Nic on the NEW ATO RULINGS FOR SELF MANAGED SUPER FUNDS and and how this can benefit you, CLICK ON THE LINK BELOW or Right Click and 'save target as'
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Nic is highly experienced in the area of tax planning for small businesses, asset protection restructuring and succession planning and estate planning techniques.
Nic's qualifications and memberships include Professional National Accountant (PNS), he holds a BA Comm and Dip FP., he is a Registered Tax Agent, practising member of SPAA (Self Managed Superannuation Fund Professional Association of Australia) and is a Sub Authorised Representative of Professional Investment Services Australian and is a registered life broker and authorised Business Broker.
Nic continually strives to find new and unique strategies to save clients tax and create wealth for them.
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Join us at the National Conference on the Gold Coast (29-30 October) where you will hear Nic Ellis share even more information on how you could buy property using your Self Managed Super Fund.
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