Brad Beer - BMT Tax DepreciationBe super awareSelf Managed Super Funds, property and depreciation Over the past six years, the total number of Self Managed Super Funds (SMSFs) in Australia grew from 399,474 to 509,992 according to statistics from the Australian Taxation Office (ATO).Those who elect to put their superannuation into a SMSF gain more control over where their retirement funds are being invested because they, as members, become a trustee. Trustees of SMSFs can choose to invest in almost any investment product, subject to restrictions set by the ATO and the Superannuation Industry Supervision (SIS) Act.In September 2007, amendments were inserted into the SIS Act 1993 which enabled the trustees of a SMSF to set up a structure allowing them to borrow money in order to invest in real estate. As a result, over the past few years BMT Tax Depreciation has experienced a significant increase in the number of tax depreciation schedule requests from SMSFs.A number of requirements surround this new legislation. One of the most important rules a property investor should note is that all transactions within a SMSF must be made and maintained at a distance. For example, if a SMSF owns residential properties, the trustee will not be able to personally rent them. The ATO sees this as a personal benefit. However, if a SMSF owns commercial properties, a trustee's business may rent the premises provided the corporation pays what is seen to be a fair market value rent.
