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Edited version of private advice
Authorisation Number: 1051535813905
Date of advice: 4 July 2019
Ruling
Subject: Income tax
Question 1
Are the activities arising in relation to your land subdivision categorised as those of an entity carrying on a business of developing and selling property?
Answer
No
Question 2
Are the future net proceeds from the land subdivision assessable as ordinary income from a profit making source?
Answer
No
Question 3
Will any gain made from the sale of a subdivided lot be a gain made from the realisation of a capital asset and a capital gain pursuant to section 104-10 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
Yes
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You have previously received a private ruling, authorisation number XXXXXXXXXXXXX on this arrangement. The relevant facts remain the same.
Relevant legislative provisions
Income Tax Assessment Act 1997, section 6-5
Income Tax Assessment Act 1997, section 104-10
Income Tax Assessment Act 1997, section 108-5
Income Tax Assessment Act 1997, section 112-25
Income Tax Assessment Act 1997, subsection 995-1(1)
Reasons for decision
The relevant facts, the law and the Commissioner's view have not changed since the issue of private ruling authorisation number XXXXXXXXXXXXX.
Therefore the reasons for decision are the same as those contained in private ruling authorisation number XXXXXXXXXXXXX.
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