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What are the tax implications on my SMSF-bought property?

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I have a self-managed super fund, which has a house in it, which the fund bought a number of years ago. If the fund sells it, what are the capital gains tax implications?

Your age and what phase your fund is in are critical. If you’re under 60 and not retired and your fund is in the accumulation phase, for example, then you pay 15 per cent tax on income and capital gain. If you have held the house for over 12 months, the capital gains tax drops to 10 per cent on the profit you make from sale.

Now this is the big issue for you to consider: if your fund is in the pension phase then no tax would be payable. The timing of the sale could be very important to your bottom line.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

For advice you can trust book a complimentary first appointment with Switzer Financial Services today.

Published on: Wednesday, August 24, 2011

The Switzer Super Report is a newsletter and website for self managed super funds. With exclusive commentary from Peter Switzer, Roger Montgomery, Paul Rickard and Charlie Aitken the Switzer Super Report will help you maximise your after tax investment returns and grow your DIY Super. Click here for a free trial or subscribe today.

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