Does your Self-Managed Fund own assets that are regarded as collectible or personal use?
(e) coins, medallions or bank notes;
(f) postage stamps or first-day covers;
(g) rare folios, manuscripts or books;
(i) wine or spirits;
(j) motor vehicles;
(k) recreational boats;
(l) memberships of sporting or social clubs.
If so, does your fund meet ALL OF the new compliance requirements?
- The asset must not be leased to a related party. This includes informal lease arrangements.
- The asset must not be stored in the private residence of a related party.
(Even if you have a purpose built cellar in your home for wine or a vault for coins).
- Decision on storage must be documented (the record must be retained for at least 10 years).
- The item must be insured (except memberships) in the fund's name.
- The item must not be used by a related party.
- Transfer to related party requires independent valuation.
As we move into the final quarter of the 2016 financial, if you've not looked into your collectible use asset NOW is the time, NOW.