Q: Can you make an in-specie transfer of a personally owned crypto holding into an SMSF?
A: Yeah, look, it’s another one that we’re getting a lot lately due to the popularity of crypto. If anyone can explain crypto to me, which I can understand, please feel free to do that.
Look, the answer here, Richard, it’s a no. You can’t currently transfer a crypto asset or holding into your SMSF. You couldn’t do it by way of an in specie contribution, and you couldn’t do it by way of the fund acquiring it from you for cash. The rules are the same.
The super rules have a restriction imposed on the types of assets that a fund can acquire from a member or from a related party. Currently, it’s really only business real property and listed shares and some other assets which we call in-house assets. Don’t worry about that. But crypto doesn’t at this stage, fall within those exemptions of listed shares, property or cash.
It’s funny. Crypto, by definition, is currency or money, but it’s not regarded by the tax office or by the regulators as being an acceptable asset for the purposes of these rules. So no, at this stage, you can’t acquire that from yourself. That may change in the future, but at the moment, it’s a no.
Again, just quickly, I know Barbara put an article out in October last year around in specie. It’s a really good article. I think it’s just called What on earth is an in specie transfer? Good article to read. It does cover these sorts of issues.
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