Limited recourse borrowing arrangements by SMSFs

Keeping You In The Know – Experts Advice With many trustees of Self Managed Superannuation Funds (SMSF) taking the opportunity to purchase investment properties in their SMSF, the requirement to enter into limited recourse borrowing arrangements (LRBAs) has caused some uncertainty with respect to compliance and taxation issues. SMSFs are generally prohibited from borrowing, but since 2007 there has been an exception where an SMSF borrows on a limited recourse basis* to acquire a specific asset, however very strict conditions need to be met. One of these conditions is that the asset is … [Read more...]