I have a query regarding negative gearing which would apply in the longer term scenario where rental return has increased to the point where a property becomes positively geared (or other sources of income are deposited in the offset account thereby reducing interest payment deduction). Let's assume you have 4-5 IPs, and the portfolio as a whole has become positively geared. You can withdraw from your offset accounts and purchase another IP, but let's say you want to keep thing managable at 5 properties max. What sort of strategies can be used to manage the additional tax burden in this case? Do you start turning over property and selling one to finance another (more expensive and thus pushing the gearing back towards nuetral or negative territory), or something else?