Sam and Bridget are self-employed. Each year, they contribute money to Self- Managed Superannuation Fund (SMSF), the SB Superannuation fund, which was set up by their accountant. This year, they have been expanding their business and do not have enough cash to contribute to the super fund. They own the premises on which the business is conducted outright (ie, there is no mortgage). Bridget owns 8,000 Commonwealth Bank shares. They also own a residential investment property. Required: Can you advise any alternative methods by which Sam and Bridget can contribute to the SB SMSF in the event they do not have the cash flow to contribute? Which assets could they transfer to the SB SMSF, and which are precluded? Explain.
Sam and Bridget are self-employed. Each year, they contribute money to Self- Managed Superannuation Fund (SMSF), the SB Superannuation fund, which was set up by their accountant. This year, they have been expanding their business and do not have enough cash to contribute to the super fund. They own the premises on which the business is conducted outright (ie, there is no mortgage). Bridget owns 8,000 Commonwealth Bank shares. They also own a residential investment property. Required: Can you advise any alternative methods by which Sam and Bridget can contribute to the SB SMSF in the event they do not have the cash flow to contribute? Which assets could they transfer to the SB SMSF, and which are precluded? Explain.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Sam and Bridget are self-employed. Each year, they contribute money to Self- Managed Superannuation Fund (SMSF), the SB Superannuation fund, which was set up by their accountant.
This year, they have been expanding their business and do not have enough cash to contribute to the super fund. They own the premises on which the business is conducted outright (ie, there is no mortgage). Bridget owns 8,000 Commonwealth Bank shares. They also own a residential investment property.
Required:
Can you advise any alternative methods by which Sam and Bridget can contribute to the SB SMSF in the event they do not have the cash flow to contribute? Which assets could they transfer to the SB SMSF, and which are precluded? Explain.
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