Here’s a great article from YIP March 2013 – SMSF Tax Traps
Top 5 traps to avoid when investing through your SMSF
The tax benefits of investing through SMSFs are luring many investors to set up their own super fund. But as Eddie (hung explains, there are a number of traps for the unwary.
Investing in property through a complying self-managed superannuation fund (SMSF) can be highly tax effective. Before a member of an SMSF starts drawing an income stream from the fund, the rental income from a property owned by the fu nd net of tax-deductible expenses is taxed at the Rat concessional tax rate of15%, compared with the highest marginal tax rate including Medicare Levy of 46.5% applicable to an individual. Any capital gain derived by an SMSF on the sale ofa property if it has been held for at least 12 months is taxed at a Rat rate of10% after the CGT discount, compared with 23.25% on any discount capital gain derived by an individual.
See PDF attachment for full article – YIP March 2013 – SMSF Tax Traps