Should I transfer my property into a self managed super fund?

Q.

I am 62 years of age, single, and retired. I have property (six units) worth $2.5m, do not receive a pension, and have no super. I receive an annual gross rent on my properties of $85,000. I owe $150,000 on my home loan and have no other debt. I would like to sell one of my units to diversify my portfolio and pay down my debt. What would be the most tax efficient way of doing this? Should I transfer my property into a self managed super fund?

It would be difficult to transfer your property into a self managed fund because the maximum non-deductible contribution you can make at your age is $450,000 and the maximum deductible contribittion is $50,000. Your best option may be to sell a property and reduce the capital gains by placing part of the proceeds into super and claiming $50,000 as a tax deduction. Another option is to transfer $50,000 each year into super as a tax deduction - this would reduce your taxable income to just $35,000 a year. Make sure you take advice before you act.