What are Collectibles:
Collectibles are personal use assets and include artwork, jewellery, boats, wine, antiques, artefacts, coins, medallions or bank notes, postage stamps, rare folios, manuscripts or books, memorabilia, motor vehicles and motor cycles, recreational boats, membership of sporting or social clubs.
The Risks: These collectibles and personal use assets;
i) cannot be leased to a related party, such as you, your company or relatives, even if they are charged a commercial fee for the use of these assets.
ii) cannot be used by a related party
iii) cannot be stored or displayed in a private residence of a related party
What to do?: The SMSF can lease the collectible or personal use asset to a unrelated party such as an art gallery on arms length terms. The artwork must be insured. The insurance needs to be in the name of the SMSF.
Where the SMSF owns a motor vehicle the related party cannot drive it for any reason.
For more information on collectables and personal use assets owned by a SMSF, please contact Peter Quinn by submitting an online enquiry or calling us on +61 2 9580 9166 to book an obligation free appointment.
The information in this document does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. It is important that your personal circumstances are taken into account before making any financial decision and it is recommended that you seek assistance from your financial adviser.