SMSE PREPARATION
Self Managed Super Funds, or the SMSF, are gaining popularity among the people. Most people invest in SMSF as it helps them to save for the future. But, unlike other restrictive old age pension plans, the SMSF fund can also be utilized to invest in real estate as well. In this article, we will help you on the kind of expenses and tax deductions you can avail with your SMSF investment. In order to make an expense from your SMSF fund, you would need to relate directly from your fund. The thing to keep in mind is that the expense that you make should be directly related to your retirement benefit. So, any expense that would benefit you currently, would not be paid by your super fund. For example, you can buy a house from your SMSF fund as that would mean that in your old age, you will have a roof over your head. So, that expense could be deducted from the SMSF account. But, if you buy a motorbike from the money, you cannot deduct that expense from SMSF, as it would not be useful to you in your old age. Also, if the expense is higher, it is likely to get more scrutinization.
Some of the SMSF rules are as follows
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●
The
loan that you take from your SMSF should be only for personal use,
and not to provide additional assistance to relatives or friends.
●
All the transactions from the SMSF fund must be done on commercial
terms.
● There are strict rules while selling things from your
super fund, so exercise concern for the same, check your trust deed
for details, terms and conditions before selling.
Payment remuneration to trustees
You
will not be able to pay remuneration to yourself for being a trustee
of your SMSF fund. But, there are some ways that you can be
remunerated for, these services are:
● You have proper
licenses and qualifications to perform the services
● The
duties that you do should be a part of the services that you offer to
the public
Tax Deductions from SMSF
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You
will not be allowed any Tax deductions from your SMSF account, but
there would be times when you could pay using super fund. According
to the tax ruling TR 93/17, some of the expenses that can be deducted
as per your SMSF are:
● Accountancy fees
● Actuarial
costs
● Audit fees
● Creating trust deed in compliance
to SIS
● The fees and premiums that would be covered under
Indemnity insurance policies
● The costs that are made to make
the payments of benefits given to the members.
● ASFA
membership fees
● Investment Adviser Fees
● Fund
Management Advisory Costs
In order to stay out of trouble, you would need to make sure you have all the invoices to the super fund, and taking care that all the transactions are done from the fund only.