A limited recourse loan by a member’s family trust to their SMSF might be a Division 7A loan. Can the loan comply with all the rules if it is in fact both types of loan?
SMSF loans
Time to get your SMSF finance in place
The next federal election is due to be held in late 2018 or early 2019 and if Labor wins this election it has plans to introduce legislation to stop SMSF lending.
SMSF checklist when borrowing to buy a property
It is essential to have the necessary cash flow inside the SMSF to fund the ups and downs of investment property ownership.
Tax problem for an SMSF-related party: 0% interest rate, 100% LVR, no regular payments etc – ATO issues PBR
The ATO has recently released a Private Binding Ruling (PBR) indicating that a related party loan to a SMSF at a 0% interest rate triggered significant tax problems.
Top 10 Traps for SMSF Borrowers, SMSF Loans
Since 24 September 2007 SMSF trustees have been able to borrow for direct property purchases under the limited recourse borrowing rules.
Related Party Loans to SMSFs: ‘Show me the money’
Townsends Lawyers are finding that some trustees are ignoring the rules on SMSF borrowing from related parties and treating it as a paper transaction rather than a real loan.