What is an in-house asset?
An ‘in-house’ asset is:
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An in-house asset is any of the following:
- A loan to, or an investment in a related party of a fund
- An investment in a related trust of a fund
- An asset of a fund that is leased to a related party.
How is it measured?
An SMSF must comply with the ‘in-house assets’ rule, which states that the amount of a fund’s in-house assets must not exceed 5% of the market value of its total assets. Simple Fund 360 will provide you with real-time reporting allowing you to easily monitor the percentage of the fund's assets.
Instructions - Set up an In-house asset in Simple Fund 360
| From the Main Toolbar, go to Accounting. |
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| Select Chart of accounts from the list. |
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1. From the Chart of Accounts screen, select Add Account and select Investment.
2. Select the Investment Type:
The following accounts are already available for use:
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- 74200 - Loans to Associated Entities (In house loans)
- 74250 - Loans to Associated Entities (In house loans) - Unitised
4. Input an Account Code and Account Name.
5. Select More Details>> and change the In-House Status to In-House Asset.
Check out the Investment Summary Report to monitor the portfolio weight percentage.