Collectables Require Action Now
SMSFs holding collectables need to ensure they are compliant under the incoming regulations applicable from 1 July 2016.
The deadline does not leave much time for planning due to the nature of those assets.
The following assets are taken to be collectables and personal use assets – artwork, jewellery, antiques, artefacts, coins, medallions or bank notes, postage stamps or first day covers, rare folios, manuscripts or books, memorabilia, wine or spirits, motor vehicles, recreational boats, memberships of sporting clubs.
Assets acquired before 1 July 2011 had until 1 July 2016 to comply with the new criteria.
If there is a flood of these items on the market in the period closer to the deadline, what will happen to market value?
Anyone still with a problem should be taking action sooner, rather than later.
A non-complying SMSF can be a costly problem.
Written by a Melbourne based accounting firm