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Edited version of private advice
Authorisation Number: 1051820180986
Date of advice: 31 March 2021
Ruling
Subject: CGT - small business concessions
Question
Do you meet the basic conditions for the small business CGT concessions under section 152-10 of the Income Tax Assessment Act 1997 (ITAA 1997) in respect of the disposal of the property?
Answer
Yes.
You satisfy the basic conditions for the following reasons. A CGT event happened in relation to a CGT asset of yours that will result in a gain. You also satisfy the conditions of the active asset test as the property has been used to carry on a business and you satisfy the maximum net asset value test.
Further information on the basic conditions 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 jointly purchased a property with your spouse.
You undertook separate businesses activities on the property's land.
The purchase of the property was to expand the existing business operation.
The land was active for at least 50% of the time that you held interest in the land.
You disposed of the land.
You satisfy the maximum net asset value test.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 152-10
Income Tax Assessment Act 1997 section 152-35
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