George and Joanna have fairly different investment outlooks in their existing superannuation arrangements. In addition, they own, via the family trust, the premises from which the business is run, which consists of one title valued at $900,000 with a cost base of $400,000. They also own a joint share portfolio valued at $80,000 with a cost base of $50,000. Their total net assets, including a number of trucks owned by the business, is $4 million. They want advice about whether they can get the property into the SMSF and what compliance issues might arise if they are able to transfer it. They also want to know how they can maximize their member balances via contributions. As their adviser, you need to address the following issues: 

(a)  Are they able to acquire the property from themselves? 

b)  Discuss the contribution issues associated with acquiring the property — how much they contribute, what types of contributions they can make, and if there are any other restrictions. 

(c)  If they are unwilling to transfer the property into the fund via a contribution, what other options do they have with regards to transferring the property into the SMSF?

Answer rating: 100% (QA)

a Are they able to acquire the property from themselves George and Joanna may be able to transfer the property from their family trust to their SMSF b... View the full answer