Can my SMSF buy my business premises with a loan? Office leased to your own business
Passes. Your firm can be the tenant.
3 of 3 rooms count as business
Your own firm can be the tenant. Every room is work.
Room by room
- ReceptionBusiness
- Open-plan desksBusiness
- Back roomBusiness
- New SMSF loan
- Allowed, leased at market rent
- Cash
- Allowed, bought at market value
Why
Business real property is one of the few assets an SMSF can buy from a related party, at market value. The fund can also lease it to a related party, including your own business, at market rent.
It only works while the property stays wholly business. If the back room becomes a bedroom, the loan stops meeting the rule.
What you can do
- Use a written lease on commercial terms, at market rent.
- Keep every room in business use for the life of the loan.
