SMSF and cars bought to be rented out

Discussion in 'Superannuation' started by AngloSaxon, Dec 31, 2012.

  1. AngloSaxon

    AngloSaxon Active Member

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    Been thinking of a few ideas for my SMSF. One is owning a rental car.

    I've read through the literature and Acts. A SMSF can't directly invest in a business, a SMSF can own a collectible car that is garaged/insured etc.

    I'm sure there will be some rules against what I'm proposing. This idea would probably sit between classes of asset. A car that is not collectible (eg Toyota) and not a direct business asset, just subleased by a rental company for use by rental customers. Is this a pie in the sky idea?
     
  2. spannermonkey

    spannermonkey Well-Known Member Silver Stacker

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    If your get a car through your smsf
    Your not allowed to drive/register it
    And you'd be mad doing it "unless " you know the vintage/collectors car market
     
  3. AngloSaxon

    AngloSaxon Active Member

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    I know I can't drive it. A car still needs to be registered, though so it can be insured - unless you get laid up cover which limits who you can insure with.

    I'm not talking about a collectible car though, just a regular car I would send out to work for the fund and generate a return.

    I'm still thinking of the sole purpose test when considering this.
     
  4. willrocks

    willrocks Well-Known Member Silver Stacker

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    Sounds more like doing business than an investment.
     

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