Thread: SMSF's and expenses

my understanding is that the smsf is a "separate entity" and as such you may claim reasonable out of pocket expenses directly related to maintenance and repair of the SMSF-owned properties.
Reasonable expenses are usually defined as per the annual ATO travel and accommodation allowances (check the ATO website).

These expenses are then deductible against the SMSF taxable income.

you ought to get professional advice if you are unsure...

cheers

Yeah I think that's what I've read too, but......do I actually "pay" for the trip out of the funds in the SMSF or do I pay for the trip out of my own cash? I don't know if that really makes sense but.....im trying to work out if I spend $1000 on a trip to qld to do the inspection and maintenance etc does that $1000 come from money in the SMSF or from my own income/bank accounts?

My understanding is that you make an entry in the SMSF expense records with receipts etc for accommmodation/meals/incidentals/"mileage" allowance as per ATO guidelines and reimburse yourself from the SMSF working account (if you have one) as you would if you paid a third party to undertake the inspections/repairs on your behalf.... (the ATO might baulk however at a claim for the capital cost of a new 110 to undertake said periodic inspections just joking...)

Given that you have to get the accounts audited each year, a quick call to the auditor should set you on the right path...

Mmmmmm a new 101 or a disco4 would be nice! Thanks for your thoughts, it is what I was thinking but just wanted to flesh it out a little. I've got my financial planner coming over next week and he's a fully accredited SMSF dude, can set them up and the full kit-and-kaboodle so I'm just doing allllllllll my research before he gets here.