653 paragraphs found
In-specie contributions are contributions to a SMSF where a physical asset (for example, a commercial property) or an intangible asset (for example, a share or an option) are contributed to the SMSF on behalf of a member without any cash being …
Where contributions are accepted in-specie, the auditor assesses whether: the fund’s governing rules permit in-specie contributions; and the SISA prohibitions on acquiring assets from related parties (including members) have been …
Once it is established that the in-specie contribution may be accepted, the auditor assesses whether the in-specie contribution is: within the contributions cap; valued at market value; and not in breach of any other SISA …
Where downsizer contributions are accepted, the auditor assesses whether: the fund’s trust deed permits downsizer contributions; there is sufficient evidence to confirm the member’s eligibility to make the contribution; and the member has not utilised the …
Key risk areas relating to downsizer contributions may include: the 10 year holding period - one member of the couple must have owned the property for at least 10 years; the property is at least partially exempt from CGT under the main residence …
Where reserves are present in a SMSF, an auditor ordinarily checks to ensure the use of the reserves by the trustee is appropriate for the fund within the requirements of the SISA [215] and SISR, in accordance with the fund’s trust deed and investment …
If the reserve was established prior to 1 July 2017, the ATO has indicated that it can be maintained by the SMSF if it is not being used to circumvent the various caps and thresholds introduced from 1 July 2017. [217] This includes manipulation of the TSB …
Funds maintaining investment reserves should consider the ongoing appropriateness of these reserves, as they are likely to attract regulator attention. If a SMSF still operates an investment reserve, allocation to members’ accounts should take into …
For contributions held in an unallocated contribution suspense account (formerly a contributions reserve), the auditor checks to ensure the amounts have been allocated to members’ accounts within 28 days after the end of the month in which the …
Allocations from other reserves will be classified as concessional contributions unless the allocation to member’s accounts is less than 5 per cent of the member’s opening balance in the year of the transfer and all members receive an …