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In-Specie / Transfer of Shares - How To Expand / Collapse
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Posted 11/06/2013 4:23:16 PM


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This question comes about quite often so we thought we'd pin a topic for users reference.

Q: "How do I record a transfer of shares from a private holding to my SMSF?"
A: This is commonly referred to as an "in-specie" transfer and can be recorded as follows.


1. If you don't have one already, create a 'Clearing Bank' bank account for your fund (Cash and Bank Accounts > Manage Bank Accounts).

2. Record a member contribution (Cash and Bank Accounts > Receive Cash > Member contribution) for an amount that is equal to the value of the shares being transferred into the fund. Please ensure that you use one of the Member Contribution accounts under Income and not Equity when recording this transaction. Use the 'Clearing Bank' bank account to receive the funds.

At this point you'll find that the clearing bank account has an amount equal to the value of the shares and a contribution for the same amount.

3. Record a purchase of the shares (Assets > Buy and Manage > Shares) using the 'Clearing Bank' bank account to pay for them.


That's it! At this point you should find that the balance of the 'Clearing Bank' is $0.00 and that the Member Contribution income account you used for the relevant member and the new account representing the shares transferred have both increased.

Please do not hesitate to contact us via info@mysf.com.au if you would like any additional information.

Regards,

MySF
Post #4896
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