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Edited version of your written advice
Authorisation Number: 1051509427537
Date of advice: 24 April 2019
Ruling
Subject: Capital gains tax: active asset: CGT small business concessions
Question 1
Is the property an active asset?
Answer 1
Yes. The Commissioner is satisfied that the use of the property meets the conditions contained in section 152-40 of the Income Tax Assessment Act 1997.
Question 2
Are you able to access the CGT small business concessions?
Answer 2
Yes. The Commissioner considers that Company A is connected to you and is a CGT small business entity.
This ruling applies for the following periods:
Year ending 30 June 2019
Year ending 30 June 2020
Year ending 30 June 2021
Year ending 30 June 2022
The scheme commences on:
1 July 2018
Relevant facts and circumstances
You own the property.
You built some commercial units with a total floor area of xxxx square metres on the property.
Some units comprise of less than 50% of the available floor space.
One unit comprises of more than 50% of the available floor space.
Some units are leased to unrelated third parties.
One unit is leased to Company A for use in their business.
Company A is a CGT small business entity.
Company A is an entity connected to you.
You will sell the property.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-50
Income Tax Assessment Act 1997 section 152-10
Income Tax Assessment Act 1997 section 152-35
Income Tax Assessment Act 1997 section 152-40