Q: Are you seeing many SMSF’s using limited recourse borrowing arrangements (LRBA) to purchase shares for example 100,000 TLS or 10,000 NAB shares? I was thinking of doing it in my SMSF and I’m not sure of the finer points or even if it is do-able. If so, does it need to be a particular parcel like what I’ve just mentioned where it’s a clearly identifiable asset and doesn’t change?
A: No I haven’t seen that many LRBAs involving shares.
NAB have a product for this. It is technically do-able.
The Tax Office allowed some leniency for bulk purchases of the same stock. I wrote an article about this in Nov 2012 which you can read here.
I hope this article helps to answer your question.
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