SMSF Advice Case Study
Mark owned a farm and was in financial trouble. He couldn’t meet the repayments and the bank was planning to foreclose on his farm property.
Mark was at risk of losing both his business and his home, which was on the same land.
Mark had a good amount of money in his industry Super fund.
His accountant approached TriSuper Auditors with an idea to set up an SMSF that could buy the farm and allow Mark to remain working and living there.
Normally a Trustee can’t live on a property that is owned by their SMSF. The key exception is where the land’s main purpose is primary production (farming). Mark’s property was a mixture of agriculture, aquaculture, cattle farming and house. In this case the land area of the residential property was a small portion of the farm’s total land.
TriSuper Auditors checked the SMSF rules for land used for primary production and found that the accountant’s proposed SMSF structure would be compliant.
Mark’s SMSF structure allowed him to keep his farm business and his home.
Farming is still a tough gig, but Mark was very happy to be able to stay and continue working on his farm.
If this case study sparks ideas for ways you can help your clients achieve their goals, give TriSuper Auditors a call on 02 4961 2788 or fill in the enquiry form on the right.
Contact Joel in the initial stages of an idea, so we can clarify the rules as they apply to your client’s situation.
Our role is to help you to provide wealth-creating and ATO-compliant SMSF advice for your clients.
For a confidential discussion, contact us today.
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This overview provides a summary only and shouldn’t be considered a comprehensive statement on any matter or relied upon as such. The advice provided on this website is general advice only.