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.

Want to become a Member?

Join Now

Already a Member?

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.

To test this feature, visit your live site.

Jean Rey

Apr 04, 2023

Shuting down SMSF with In-House asset

in SMSF Technical Forum

Hi SMSFAAA team,

A trustee wants to shut down his SMSF. He has an in-house asset amount of $63k and about $75k in cash – no other assets.

Is the SMSF allowed to forgive this debt and then he needs to include it as taxable income on his tax return, or does he have to repay it first and then close down the fund?

Please let me know.

Yours Sincerely

1 comment

Comments (1)

THE AUDITORS INSTITUTE

Apr 05, 2023

Hi Jean

My view is that it would not normally be an "arm's length transaction" or meet the "sole purpose test" if a SMSF forgave a loan.

On that basis the loan should be repaid to the SMSF before it is wound up.

Thanks

SMSF AAA