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Edited version of private advice
Authorisation Number: 1051571330823
Date of advice: 29 August 2019
Ruling
Subject: CGT - small business concessions
Question
Do you meet the basic conditions for the small business CGT concessions under section 152-10 of the Income Tax Assessment Act 1997 (ITAA 1997) in respect of the disposal of the property?
Answer
Yes.
You satisfy the basic conditions for the following reasons. A CGT event will happen in relation to a CGT asset of yours that will result in a gain. Additionally you satisfy the maximum net asset value test as the net assets of you and your connected entities and affiliates do not exceed $6 million. You also satisfy the conditions of the active asset test as the property has been used by a connected entity to carry on a business. Further information on the basic conditions can be found by searching 'QC 44192' on ato.gov.au
This ruling applies for the following period:
Year ended 30 June 2018
The scheme commences on:
1 July 2017
Relevant facts and circumstances
You are equal partners in Partnership A.
You owned a property that was and is still leased to Partnership B for the purpose of running the business.
You have sold the property.
The partners share the same trustee.
The net market values of your assets, including affiliates and connected entities is less than $6 million
Relevant legislative provisions
Income Tax Assessment Act 1997 section 152-10