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Edited version of your written advice
Authorisation Number: 1012879082841
Date of advice: 16 September 2015
Ruling
Subject: Capital Gains Tax
Question 1
Is the property acquired a pre- CGT asset?
Answer
No.
This ruling applies for the following periods
Year ended 30 June 2016
The scheme commences on
1 July 2015
Relevant facts and circumstances
A owned a property which was used to carry on a business.
A trading company Band a holding company C were created.
A transferred the property to C with a contract date of the XXXX.
Settlement occurred on the XXXX.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 104-10
Income Tax Assessment Act 1997 Subsection 104-10(5)
Reasons for decision
As per subsection 104-10(5) of the Income Tax Assessment Act 1997 (ITAA 1997), a capital gain or capital loss you make is disregarded, if you acquired the asset before 20 September 1985.
Whilst it may have been A's intention to transfer the asset prior to 20 September 1985, the contract date of the sale of the property is the XXXX.
Consequently, the asset was not acquired before the 20 September 1985 and the property is considered to be a post CGT asset. Therefore, the capital gain on the sale of the property cannot be disregarded.