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Geared property and transition to retirement

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JimmyB | 28 Feb 2015, 05:25 PM Agree 0
My SMSF has a commercial property which it's leasing out to a good tenant. To buy the property in 2011, the SMSF set up a bare trust with a corporate trustee in order to borrow money.
My question is this: now that I am 61, I would like to go into transition to retirement phase which means 0% tax on income and capital gains on the assets in my account in the super fund. (My wife has a separate account in the super fund, not including the property.) Can the property, which still has a mortgage, be part of that transition and 0% tax rate, or must it stay in accumulation phase as long as it has borrowings against it? I have heard various opinions, but the ATO couldn't give me one over the phone!
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