| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your written advice
Authorisation Number: 1051483450238
Date of advice: 21 February 2019
Ruling
Subject: Capital gains tax-small business concessions-50% active asset reduction
Question
Do you satisfy the conditions for the small business 50% reduction pursuant to section 152-200 of the Income Tax Assessment Act 1997 (ITAA1997) in relation to the sale of your share of the property?
Answer
Yes, based on the information provided you satisfy the basics conditions under section 152-10 of the ITAA 1997 as you satisfy the maximum net asset value test and the asset was an active asset for a total of at least half of the period of ownership. Accordingly, you are eligible to apply the 50% active asset reduction to the sale of your share of the property.
This ruling applies for the following period:
Year ended 30 June 201X
The scheme commences on:
1 July 201X
Relevant facts and circumstances
In XX/20XX you and Z, jointly purchased a property.
You and Z are partners in a partnership.
The partnership operated a business on the property for more than half the time the property was owned by the partners.
The partnership was a small business entity during the income years that it carried on the business.
You satisfy the maximum net asset value test under section 152-15 of the ITAA 1997.
The property was sold in XX/20XX.
A capital gain was made on the sale of the property.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 152-10
Income Tax Assessment Act 1997 Section 152-35
Income Tax Assessment Act 1997 Paragraph 152-35(1)(a).
Income Tax Assessment Act 1997 Section 152-205