Karen, a friend of Jake and Mary, has recommended that they set up…

Question Answered step-by-step Karen, a friend of Jake and Mary, has recommended that they set up… Karen, a friend of Jake and Mary, has recommended that they set up a Self-Managed Superannuation Fund (SMSF), as it will provide them with “higher returns”. Karen has suggested that the SMSF purchase a house in their SMSF, and that Jake and Mary can live in that house and pay the rent directly to the SMSF by making tax-deductible salary sacrifice contributions.  Luke, another friend of Jake and Mary, suggest that they should purchase an investment property via an SMSF structure. The property can be rented out to a tenant. David suggests rolling over all their existing superannuation’s and setting up an SMSF. The property is listed on the market for $950,000. Furthermore, Luke suggests, that they set up another company as a corporate trustee to assist in this process. Assuming that they purchase it for that price i. Clearly list and place an approximate dollar value on all other relevant incidental and additional costs associated with purchasing this property via the SMSF structure described above ii. Explain to Jake and Mary, how they could go about this process – i.e. how to purchase the property via the SMSF via a loan etc. Support your explanation with a diagram or flow chart depicting the steps in this process.   Business Finance FIN ACFIN202A Share QuestionEmailCopy link Comments (0)