Ask the auditor: caps and valuations

Founder and CEO of Engage Super Audits
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Q:  How should an SMSF starting an account-based pension value cash deposits or fixed deposits?

A: Cash and fixed term deposits are typically valued at their face value (principal amount) when an SMSF is starting an account-based pension.

Interest income is taxable when it is received (i.e., on a cash basis), so SMSFs tend to recognise interest income on a cash basis.

Q: Are share transfers counted in my $150,000 non-concessional cap?

We want to transfer shares my wife and I hold outside the super to our SMSF. We understand this is called an "in specie" transfer and we have until the end of this financial year to do so.

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