The purchase of an asset by a SMSF from a member will be regarded as being on an arm's length basis when it is purchased at:

Question

Quizplus · Accepted Answer

It is important for all transactions involving a SMSF and its members to be conducted on an arm's length basis, which means that the transaction must be conducted in the same way as if it were between two parties who are not related. In the context of purchasing an asset, this means that the asset should be purchased at its market value, which is the amount that a willing buyer and a willing seller would agree to in an open and competitive market. Purchasing the asset for more or less than the market value would not be regarded as an arm's length transaction. Therefore, the best choice is (C) market value.

The Purchase of an Asset by a SMSF from a Member