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Edited version of private advice
Authorisation Number: 1051531157693
Date of advice: 28 June 2019
Ruling
Subject: CGT - small business concessions
Question 1
Are you a CGT small business entity under subsection 152-10(1AA) of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
Yes. You carry on a business of primary production and have an aggregated turnover below $2 million. It is accepted that you are a CGT small business entity. You meet the basic requirements under subsection 152-10(1AA) of the ITAA 1997. Further information can be found by searching 'QC 52267' on ato.gov.au
Question 2
Is the propertyyou own an active asset under section 152-35 of the ITAA 1997?
Answer
Yes. You satisfy the conditions of the active asset test as you have used the asset for at least 7.5 years in the course of carrying on a business and the exceptions do not apply. Further information can be found by searching 'QC 44192' on ato.gov.au
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You purchased several acres of post-CGT land in town A more than 15 years ago (the property). You provided the value of the property at acquisition. The property has no dwelling and has never been leased out.
From the time of purchase, the land has been used for primary production. More recently you started receiving further income from agistment.
You have used the property in carrying on a business of primary production. The business had an aggregated turnover of less than $2 million.
You have provided details of your primary production business activities which have occurred for more than X.X years during your ownership of the property.
You are now considering selling the property and retiring.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subsection 152-10(1AA)
Income Tax Assessment Act 1997 Section 152-35
Income Tax Assessment Act 1997 Section 152-40
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