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A member of SMSF over 60 years old and stopped working. He want to withdraw lumpsum so he need transfer the property (in Victoria) that paid off LRBA to personal name and wind up his SMSF.
Please give me your ideas as below
Does accountant whether need complete an interim Financial Reports with MV firstly?
and then member application for withdraw lumpsum in specie?
Can member transfer owner property direct from Company Bare Trustee name to personal name without pay stamp duty?
Is it whether any CGT involve SMSF?
Can member wind up SF before or after transfer property?
Please guide me what auditor need mention and what docs need collect for withdraw lump sum in -specie
Many thanks
Hi Phuong
Thanks. You have raised a number of issues.
Yes interim accounts should be prepared to value the member's balance prior to a benefit being paid.
The member should apply for a lump sum benefit and request the in-specie transfer of the property.
The stamp duty rules are different in each state so it will depend on which state the property is in. This is best checked with the lawyer doing the transfer. As an example can normally not pay stamp duty in Victoria on an in-specie transfer of property to a Fund member (but stamp duty normally payable in NSW re such a transfer).
If the Fund was in accumulation mode there would be CGT on any gain on transfer of the property. If in pension mode and a partial commutation is done then can have no CGT payable if required steps are followed.
Yes the Fund can be wound up after transferring out / paying out Fund assets.
Your client should get professional legal and tax advice given the complicated issues.
Thanks
The Auditors Institute