Tax deductions for SMSF Trust and any deductions for Trustees

Discussion in 'Superannuation' started by AngloSaxon, Mar 25, 2013.

  1. AngloSaxon

    AngloSaxon Active Member

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    This thread is in 2 parts:

    1) Tax deductions available to SMSFs out of their costs.
    2) Any deductions that trustees may make from their own costs while administering their SMSF.

    1. Superannuation Fund tax deductions

    So far I've determined that Super Funds in their normal operations may deduct (when they pay from them out of principal or revenue):

    * Accounting and auditing fees
    * Actuarial fees and any fees relating to payments of benefits in pension phase
    * Subscriptions directly relating to The Association of Superannuation Funds of Australia Limited
    * Administration costs. Can include vault/bank deposit fees, postage and stationary,
    * Tax accounting/tax return preparation costs.
    * Costs of regulatory compliance, eg ATO and ASIC regulation fees for Corporate Trustee companies
    * Legal expenses that are not of a capital nature. I'm including the costs of generating the Trust Deed as an expense.
    * GST credits where the fund is registered for GST.
    and
    * Trustee fees

    Anything else that doesn't fit into those categories I missed out? Please comment.

    2. Trustee deductions

    Now this is where my real question comes in. The Superannuation Act states you may not take payment in your capacity as a Trustee of a SMSF. However my brief reading on Trusts generally, leads me to believe that a Trustee of most trusts may take reimbursement for costs. However, in general, that reimbursement is treated as personal income that is of course personally taxed. Given I'm using my computer, electricity and internet, space in my house and time to administer my family SMSF I was wondering if anyone with experience in Trusts has used any method where an apportioned amount of internet/electricity etc has been able to be deducted from your personal expenses.

    I considered using the fund to pay for 10% of my internet and 5% electricity directly but eventually just ruled it out as too inconvenient.

    This is all with a view to legal tax minimisation, of course :cool:
     

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