You may be aware that you can’t own residential property in your Super Fund and rent it to a related party. You can, however do this with Commercial Property under certain conditions.This includes ensuring that, when you have a related entity leasing the property (Commerical Owners), the rental must be charged at commercial terms.
Your superfund’s Auditor may request evidence showing the rental income is paid on commercial terms. If you hold assets under a SMSF, you are required to lodge an annual return once the audit of your SMSF has been finalised. You also need to value the assets of the fund at their market value for the purpose of preparing your fund’s accounts, statements and the SMSF annual return.
Market value is the amount that a willing buyer of the asset could reasonably be expected to pay to acquire the asset based on a number of assumptions. You can read more about this on the ATO website here.
