SMSF property in equal shares to avoid CGT

Hi there,

My wife (34) and I (34) are looking at buying an investment property in my SMSF.

I have approximately $600k in my SMSF and my wife has $200k in her Industry Fund.

The idea is for her to become a member of my SMSF and roll over her $200k. This gives us $800k combined. We will then look to borrow another $600k to buy a property for around $1.3M.

I wanted to understand if there was a way for us to purchase a property in equal shares, instead of in a 75/25 split. I have a considerably larger than average super balance for my age and basically wanted to know if there was a way to offload some of it to her by purchasing in equal shares. The purpose here would be to allow us to fit more of the property's value under each of our respective transfer balance caps once we hit preservation age and likely liquidate the property for shares. If we have to buy with a 75/25 split then I will be well over the cap and she will be well under - which will result in CGT on my portion.

Any thoughts or ideas would be welcome
Thanks
GROCT

 

The trustee of the fund will buy it and the trust will pay tax on the income as a separate taxpayer, you won't have splits. But you will still have separate member balances which won't change

 

You might be able to use contributions splitting to increase your wife's balance

Contributions splitting

 

Its several decades before transfer balance caps have any bearing IF they still exist then. They are indexed of course. When a smsf buys property the fund owns the asset in full. However each members balance is a proportion of total net assets. So in theory each member has a indirect share of the property and all other investments etc. Geared property isnt a asset suitable for pensions hence poses a TBC issue anyway. The "net" asset is the property value less loan balance. You cant just count the asset part.