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I am 63 years old and working in my own Family Trust Tax agent and accounting business full time, I do not taking wages but I get distribution from family tax and pay tax.
I am planning to purchase a commercial property for my business to operate from there
I have SMSF has balance of 35K
Can I with draw the full amount after putting another 10k as personal contribution with the intention to claim a tax deduction, to pay the deposit for the above purchase
Technically I have not reduced any changes to my working hours for my self however my Turnover of the business has dropped 40 % to 50%
Hi Ranjini
I assume your benefits in the Fund are all preserved and on that basis you cannot access the benefits (as a lump sum payment) until you meet a condition of release.
A condition of release would be (as per SIS Reg 6.01(7)) leaving an employment arrangement (as you are over age 60) or reaching 65 years of age.
As you get a distribution from a Trust (instead of taking wages) and you have not reduced working hours there is nothing to support that you have left an employment arrangement (or that an arrangement has come to an end).
You can also refer ATO case study QC 48668 – Retirement – Establishing whether gainful employment has ceased. This case study looks at performing work and receiving distributions and employment arrangements.
Thanks
SMSF AAA