.png)
I have been asked the question from an accountant, if a fund was to dispose of Land to a related party, part of the sale to be paid in cash & the balance as in-specie lump sum withdrawal. What documentation would I be expect to be provided for this transaction? I was thinking that there should be an independent market valuation, member resolution requesting the property be transferred & land trasnfer documents to show that the transaction occured & the fund no longer owns the asset. To protect from NALI / NALE would it be best to have a sale contract that outlines the porption of cash v in-specie lump sum withdrawal?
top of page
THE AUDITORS INSTITUTE | FORUM
Archived Forums
When you become a member of The Auditors Institute, you immediately gain access to expertise, advocacy for your profession and peace of mind.
Ask a question in our members-only forum or use the search function to find prior technical discussions on your topic. You can expect a response within 24-48hrs.
Disclaimer
The forum is made available by The Auditors Institute Ltd for the benefit of it’s members only, and its primary purpose is to facilitate education, training, and discussion between members. The information and answers provided within the forum are of a general nature and do not consider any specific circumstances, objectives, financial situation or needs related to the matter/s raised. The responses should not be construed as financial advice, and each Member should seek their own professional advice before making any decisions. The Auditors Institute Ltd and its representatives are not responsible for any actions taken based on the information provided in the forum.
bottom of page
Hi Lacey
Re the sale / transfer of property from a SMSF to a related party yes to ensure compliance with section 109 of SIS yes you would want the trustees to get an independent market valuation for the property.
Re the portion re cash versus lump sum I would raise this with the lawyer that is doing the convayencing. This is because in some states in Australia stamp duty on transfer of a property can be avoided if there is no consideration (i.e. in specie) & there is no change in beneficial ownership.
Yes there should be paperwork to support what part of the transfer is in cash & what part is in specie.
Thanks
SMSF AAA