Can I keep collectables in my SMSF?
The short answer is yes, but the rules have become more strict.
New rules regarding storage and insurance for collectables and personal use assets such as artworks, jewellery, vehicles, boats and wine originally came into effect from July 2011. However for collectables and personal use assets that you held before 1 July 2011 you have until 30 June 2016 to comply with these rules, sell or transferred out of the fund under the old rules. From July 2016 all collectables and personal use assets will need to comply with the new rules
So what are the new rules you must comply with?
Collectables and personal use assets can’t be:
- leased to a related party;
- used by a related party; or
- stored or displayed in a private residence of a related party.
- The item must be insured in the fund’s name;
- The decision on where the item is stored must be documented and kept for 10 years; and
- If the item is transferred or sold to a related party, it must be independently valued.
For further information refer to the ATO website or alternatively please contact us and talk with one of our advisers.
Mark Carey | Accountant | The Money Edge | Bundaberg