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Success Stories    SMSF Case Study 2
Case Study II - SMSF: Succesion planning

Scenario

  • Peter (62 years old) operates a car workshop from a premises acquired in 1991. He wants to retire and allow his son John to take over the business
  • The property is now worth $1 million and has been fully paid off
  • Peter has few assets other than his interest in the business
  • Peter and his family have SMSFs with total assets of $500,000
  • The SMSF invests in the property using a Tandem Uehling brokered funder in order to provide $700,000 of the purchase price
Facts
  • Their super fund provides the balance and the usual transaction costs including stamp duty
  • Peter receives the market value ($1m) which he uses to contribute to super
  • No CGT is payble because of the small business retirement provisions
  • Peter and his wife can each get a tax deduction for up to $105,113 for these contributions - the rest is non-deductible
  • Peter and his wife can now receive tax free income of $85,000 pa whilst John pays deductible rent of $73,000 pa
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