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Edited version of private advice
Authorisation Number: 1051570641485
Date of advice: 23 August 2019
Ruling
Subject: Small business CGT concessions - 15 year exemption
Question
Are you eligible to use the small business 15 year exemption under Subdivision 152-B to disregard your capital gain from selling your property?
Answer
Yes. You won't have an assessable gain on the sale of the active asset as you have met the basic conditions, are over 55 years old and you have owned the active asset for more than 15 years. The Commissioner also considers that the CGT event has happened in connection with your retirement. Further information can be found by searching 'QC 52288' on ato.gov.au
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You own a property as tenants in common with your siblings.
The property was initially acquired by your parent pre-1985.
Your parent died. The property passed to your surviving parent as the sole beneficiary of the estate.
Your surviving parent died post 1985
The property has been used for a primary production business from acquisition by your parent until sale.
You and one of your siblings were in the primary production partnership business.
Before you became an owner of the property you ceased that partnership with your sibling.
You then started another partnership with your spouse on the property running the primary production business. This business continued until the property was sold.
You were over 55 when the property was sold and the sale was in connection with your retirement.
You have no affiliates.
You are a small business CGT entity for the relevant financial year as your turnover did not exceed $XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 152-10
Income Tax Assessment Act 1997 section 152-35
Income Tax Assessment Act 1997 section 152-40
Income Tax Assessment Act 1997 paragraph152-40(1)(a)
Income Tax Assessment Act 1997 section 152-105