Can I buy a laptop with my SMSF?
Yes, if the laptop was used 100% by the SMSF it could be claimed but this is the answer to a theoretical question if in a test, practically you would never buy a laptop in an SMSF!
This is because when considering purchasing a laptop in your SMSF look at the sole purpose test, not just the tax implications.
Passing the sole purpose test determines if your SMSF can purchase the laptop.
A laptop is not something you see included in the assets owned by a SMSF. It doesn’t mean a SMSF can’t theoretically purchase a laptop, but the SMSF auditor will look very closely at this type of transaction and is guaranteed to qualify the funds audit as the auditor cannot be reasonably satisfied that the laptop is used 100% by the fund.
A self-managed superannuation fund (SMSF) is required to adhere to the Superannuation Legislation (SISA). The primary principle is that the sole purpose of an SMSF trustee is to maintain the fund for the purpose of providing retirement or death benefits to its members or their beneficiaries and not to provide a private benefit to a member.
Let’s have a look to see if the purchase of a laptop fits into the sole purpose test.
Is the laptop purchased and used only by the trustee for SMSF activities? Yes ✓
Examples of fund activities may include:
- access the fund’s bank account transactions and bank statements
- paying fund expenses and liabilities from the fund’s bank account
- receiving fund income deposited or transferred to the fund’s bank account
- email various agents i.e. accountant, financial adviser, real estate agent
- obtain statements from service providers such as broker trading statement, wrap platform records, rental statements
- trading transactions, buying or selling cryptocurrencies, buying or selling property
- research investments
- processing transactions in accounting software or specialised super software
- access online services for a SMSF such as the ATO business portal to view business activity statements, PAYG instalments and ATO payments or refunds, SuperStream to receive and make member rollovers, contributions and receive release authorities
What evidence can you provide the SMSF auditor that the laptop is only used for SMSF purposes?
The evidence might include the following:
- trustee statement/statutory declaration to confirm any personal use is incidental and insignificant and the members have and use their own laptops for personal use
- evidence of personal laptops, such as purchase invoices, to support the trustee statement
- keep a logbook over say a 3-month period as a log to show the laptop activity and update the logbook for any significant changes to the general SMSF activities or if a new replacement laptop is purchased
- copy of the laptop invoice which should be in the name of the SMSF and be paid directly from the fund’s bank account
Can I jointly own a laptop with my SMSF
No as the ownership would be as a joint owner and the SMSF would not have a separate and identifiable asset which means the sole purpose test would likely fail as well as the requirement to keep personal and SMSF assets separate.
What are the tax implications?
The maximum tax deduction obtained by a super fund is only 15% or can be less if your SMSF is also providing pensions to its members. A laptop is a capital purchase and is depreciated, usually over a 2-year period. So, in practical terms a $2,000 laptop has a maximum benefit of $300 of tax back, a very minor return on such a risky claim.