Limited recourse borrowing arrangements

Limited recourse borrowing arrangements

CLICK HERE to register for the next four SMSF Strategy Seminars and save $120 or more per attendee.

All delegates must be registered to be able to see training and to be eligible to receive CPD points and not to breach copyright law.


Recording

  • Expiry Date: 1 November 2020
  • Duration: 90 minutes

TABLE OF CONTENTS
1. INTRODUCTION
1.1 Overview
1.2 Borrowing prohibited up until 24 September 2007
1.3 Section 67(4A): 24-9-2007 to 6-7-2010
1.4 Sections 67A and 67B: 7-7-2010 onwards
1.5 FSI final report recommendations: banning of LRBAs
1.6 Reading
2. TYPICAL STRUCTURE, AT A GLANCE
3. KEY FEATURES
3.1 Single acquirable asset
3.2 Borrowing for initial expenses\repairs (not improvements)
3.3 Refinancing  
3.4 Asset held on trust for SMSF
3.5 Right to acquire legal ownership  
3.6 Limited recourse loan
3.7 Transfer asset on repayment
3.8 Guarantees  
3.9 Holding trust — only one asset  
3.10 Reading  
4. TAX CONSIDERATIONS
4.1 Introduction  
4.2 Stamp duty  
4.3 GST  
4.4 Capital Gains Tax (‘CGT’)  
4.5 Deductibility of expenses and assessability of income
4.6 Duty —transfer from holding trust to SMSF
4.7 Division 7A loans
4.8 Reading
5. PRACTICAL TIPS  
5.1 Deposit
5.2 Contract of sale — timing
5.3 Only single asset in holding trust
5.4 The holding trustee  
5.5 Finance  
5.6 All dealings at arm’s length  
5.7 Advantages of corporate trustee  
5.8 Increased flexibility under s 67(4A)  
5.9 Leases
5.10 Reading  
6. OTHER ISSUES FOR SMSF BORROWING  
6.1 Off-the-plan purchases  
6.2 Tenants in common
6.3 Multiple titles  
6.4 Property development  
6.5 Capitalisation of interest
6.6 Subdivision of land
6.7 Reading
7. FURTHER REGULATORY REQUIREMENTS
7.1 Sole purpose test
7.2 Investment strategy  
7.3 Financial assistance to members
7.4 Financial services regulation  
7.5 Reading
8. ALTERNATIVES  
8.1 Introduction  
8.2 Additional contributions  
8.3 Non-geared unit trust
8.4 Geared unit trust  
9. FINAL CONSIDERATIONS
9.1 Commerciality  
9.2 SMSF deed  
9.3 Other documentation
9.4 General guide  
9.5 Reading
10. LRBAS AND RELATED PARTY LEASES  
10.1 SMSF borrowing rules  
10.2 Identity of payee
10.3 Contributions  
10.4 Arm’s length rules
10.5 In-house assets  
10.6 Reading  
11. DUTY TABLES  
11.1 Reading


Please click here for pricing.



Cahoot Learning Privacy Policy