Topics on self-managed superannuation fund – SMSF (15)

Example: Asset Purchased Below Market Value Without In-Specie Contribution

In 2019, Keri, managing her SMSF, bought ASX listed shares from a related party for $250,000, while their market value was $500,000. Despite the shares' true value, the agreement stated the purchase price as $250,000, not $500,000. As per the ATO in LCR 2019/D3, this setup didn't involve an in-specie contribution to the SMSF, even if the fund accounts for it as such.

The ATO views this transaction as non-arm's length, suggesting it's a scheme where Keri's SMSF spent less capital than expected. Consequently:

• Any dividends earned by the fund from these shares will be considered NALI (non-arm's length income).
• Any potential capital gains from selling these shares will also be treated as NALI.

For assistance or queries, reach out to Tax Ideas Accountants & Advisers at +61 2 83181545 or book an appointment through our live calendar.

• Topics on self-managed superannuation fund – SMSF (1)
• Topics on self-managed superannuation fund – SMSF (2)
• Topics on self-managed superannuation fund – SMSF (3)
• Topics on self-managed superannuation fund – SMSF (4)
• Topics on self-managed superannuation fund – SMSF (5)
• Topics on self-managed superannuation fund – SMSF (6)
• Topics on self-managed superannuation fund – SMSF (7)
• Topics on self-managed superannuation fund – SMSF (8)
• Topics on self-managed superannuation fund – SMSF (9)
• Topics on self-managed superannuation fund – SMSF (10)
• Topics on self-managed superannuation fund – SMSF (11)
• Topics on self-managed superannuation fund – SMSF (12)
• Topics on self-managed superannuation fund – SMSF (13)
• Topics on self-managed superannuation fund – SMSF (14)
• Topics on self-managed superannuation fund – SMSF (16)
• Topics on self-managed superannuation fund – SMSF (17)
• Topics on self-managed superannuation fund – SMSF (18)
• Topics on self-managed superannuation fund – SMSF (19)
• Topics on self-managed superannuation fund – SMSF (20)