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  1. Don Rudd

     /  April 27, 2017

    Very informative. I have a question regarding rental property held by an SMSF. I know fund members can’t reside in the property themselves even for short periods without incurring penalty rates of tax. Is that condition eased at all when the fund goes into pension phase but still retains the asset?

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    • Hi Don, I am afraid the answer is no. The assets of the fund must be used to provide for a retirement income for the members not a retirement lifestyle. You can use a residential property owned by an SMSF for personal or family use. If you decide you want to use it personally then the best thing to do is to consider moving it out of the fund. Depending on the state you live in this may result in stamp duty. If you do it while the fund is in pension phase then you may not have to pay any CGT. Don’t think you can fool the ATO either as eventually they will catch up with you. In this day and age they have various ways of showing you have been using the property.

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