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Edited version of private advice
Authorisation Number: 1051534826337
Date of advice: 28 June 2019
Ruling
Subject: CGT - small business entity and active asset
Question 1
Are you a CGT small business entity under subsection 152-10(1AA) of the Income Tax Assessment Act 1997 (ITAA1997)?
Answer
Yes. You, in partnership, carry on a business of primary production with an aggregated turnover below $X million. It is accepted that the partnership is CGT small business entity. You meet the basic requirements under subsection 152-10(1AA) of the ITAA 1997. Further information can be found by searching 'QC 52267' on ato.gov.au
Question 2
Is the propertyyou own an active asset under section 152-35 of the ITAA1997?
Answer
Yes. You satisfy the conditions of the active asset test as you have used the asset for at least 7.5 years in the course of carrying on a business and the exceptions do not apply. Further information 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 and your spouse (you) purchased a post-CGT property of several acres after more than XX years ago (the property). You have provided details of the acquisition.
The property was used in a primary production business which you carried on in partnership. You provided your business name which was registered when the business was commenced. You have provided details of the stock and activities.
Primary production activities have been carried out on the land since that point and reported in the business income schedule of your partnership each year.
You have provided details of the primary production business activities which have occurred for more than X.X years during your ownership of the property.
The primary production business has a turnover of less than $X million.
You are now contemplating selling the property and retiring.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subsection 152-10(1AA)
Income Tax Assessment Act 1997 Section 152-35
Income Tax Assessment Act 1997 Section 152-40