Can an SMSF purchase or lease a car to a related party?
Your SMSF cannot buy you a car as a gift, but it can lease one to you on a commercial basis provided the value of the car is less than 5% of your whole SMSF portfolio. “The other aspect of that is that the lease absolutely must be commercial. You couldn’t lease a $25,000 car at a rental of $1 per week as this is not a legitimate commercial rate,” LaGreca said. So, if a vehicle lease company would rent the car for $200 a week you must pay your SMSF the same. Can an SMSF purchase property and rent it to a member? Technically yes, it is possible for your SMSF to purchase residential property and lease it to you but you would be limited by the 5% rule. To begin with, you would need to have either a multi-million dollar portfolio or a very cheap property for this to work. In order to purchase and lease a $400,000 home, your SMSF would need more than $8 million. However, the SMSF can buy a property that the investor intends to live in after retirement. This is possible if you transfer the pr
