what a ripper, page-2

Ray,

A common mistake for many.

When you transfer shares from your own name into a SMSF you trigger a capital gains tax event and are liable for CGT on any gains in your own name.

The superfund will have the shares at a cost base of whatever their market value was on the day of transfer. The 'tax free' component is only any gains made on the shares above what they were worth on the day of transfer.

Many financial planners have no idea about this and it leaves us (tax accountants) to clean up the mess created, including making that call to the oblivious individual letting them know they have a huge tax liability due on an amended 2007 and prior tax return.

Tim