hi systems
you've got three ways to get the shares into the fund
1 - say the fund has spare cash of 100k - the fund can simply buy 100k in shares off you (supported by an off market transfer) - you incur cgt consequences personally and the fund hasn't changed value - ie it had 100k spare cash and now has new shares worth 100k; or
2 - you sell the shares personally and incur cgt consequences, then make a cash cont'n and then repurchase the shares on market - this is messy and means you're out of the market for a few days (can have a big diff if you were out of the market on LEI in the last week or so) - not to mention x2 lots of brokerage; or
3 - simply do an omt for the shares and transfer them in-specie for current value - and yep, you incur cgt consequences personally
the point i noted earlier was that in case 1 the fund hasn't changed value as there is simply no 'contribution' - however in 2 and 3 the fund has received contributions either cash or in-specie - the key point also is that you mentioned you're over 60 and in pension phase - accordingly, you may have the capacity to offset some of any crystallised gain by claiming part of the market value transferred (or cash) as a tax deduction to help offset the capital gain
hope that helps
cheers
mk
- Forums
- General
- shares in smsf vs out of smsf
hi systemsyou've got three ways to get the shares into the fund1...
-
- There are more pages in this discussion • 5 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)