Capital gains tax from selling negatively geared property in an SMSF

Take the situation where an SMSF had bought residential houses off the plan. The client then wants to sell one of these residential rental properties which is still negatively geared to pay down the overall debt against the SMSF. Other than a bank account, the SMSF is totally made up of residential property which is all negatively geared.

The property is actually held on trust for the SMSF, by a trust and trustee company so that a mortgage could be taken out to service the debt on the property.

Has anyone had any experience in dealing with such a transaction in relation to a self-managed super fund?

Your thoughts would be greatly appreciated.

Hi Magenta, from what I understand of your question, it looks like you have not separated the properties into separate assets. If you do this then you will be able dispose of the the single property.


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