The deadline for SMSF trustees to ensure all collectables and personal use assets purchased before 1 July 2011 meet the current rules is fast approaching.
By 30 June, trustees must ensure all collectables comply with current rules, which include:
- not leased to or used by a related party
- not stored or displayed in a private residence of a related party
- record in writing the reasons for the decision on where to store the collectables and
- insure the asset is in the name of the fund
Trustees need to ensure all collectables meet the rules or dispose of the assets before 1 July. If transferring assets to a related party, the market price needs to be determined by a qualified independent valuer.