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Edited version of private advice
Authorisation Number: 1051824035877
Date of advice: 7 April 2021
Ruling
Subject: Active asset test
Question
Is Property B considered an active asset under subdivision 152-A of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
Yes.
Property B satisfies the requirements of an active asset and the active asset test set out in subdivision 152-A of the ITAA 1997.
This ruling applies for the following periods:
Year ended DD MM YYYY
The scheme commences on:
DD MM YYYY
Relevant facts and circumstances
You are the directors and only shareholders of Company X.
Company X carries on a business.
Company X is primarily operating on and out of Property A.
You acquired Property B for use by Company X in their business operations.
You disposed of Property B.
You made a capital gain from the sale of Property B.
Property B has only been used for income producing purposes.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subdivision 152-A
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