Opinion
How to reduce tax on real estate profits in an SMSF
Carefully consider the tax implications of transferring real estate from an SMSF into your own name.
John WasilievColumnistQ: My wife and I are both around 70 years old and we retired nearly 10 years ago. We each have Victorian government defined benefit pensions from careers as teachers before we opened our own business and set up a self-managed super fund to invest in shares and property. The remaining asset in our SMSF is an apartment in Melbourne valued at between $2.2 and $2.3 million that we bought for $1.35 million 10 years ago. We’d like to close our SMSF and one option would simply be to sell the apartment and place the funds into our accumulation funds (we can’t add to our pension funds). My wife is wondering if we can simply transfer the property into our own names and close our SMSF without a sale. What issues would we need to consider when thinking of these options? Mark.
A: Regarding your inquiry about whether you can transfer the property to your own names without a sale ahead of closing your fund, there are a number of issues you will need to bear in mind.
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