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Edited version of private advice
Authorisation Number: 1051581614232
Date of advice: 17 September 2019
Ruling
Subject: Small business CGT concessions - active asset
Question 1
Is the propertyyou owned an active asset under section 152-35 of the ITAA1997?
Answer 1
Yes. You satisfy the conditions of the active asset test as your connected entity has used the asset for at least half of the period you owned it 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 2019
The scheme commences on:
1 July 2011
Relevant facts and circumstances
Company A acts trustee for Trust A (the Trustee).
Person A and their spouse are beneficiaries to the trust.Person A is the sole director of both Company A, and Company B. Person A also owns 100% of Company B shares.
In 2011, Company A as Trustee for Trust A acquired a property. You provided the address and details of the acquisition.
At the same time, Company B bought the business operating at the property. Company B continued to operate the business from the property.
The property was leased to Company B from the date of acquisition to 2017. At that date, Company B sold the business to a third party and the lease was transferred to the new business owner until the property was sold in 2018. You provided details of the sale.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 152-35
Income Tax Assessment Act 1997 Section 152-40
Income Tax Assessment Act 1997 Subdivision 328-C
Further issues for you to consider
This ruling has not considered your eligibility for the small business rollover concession. You should ensure that you satisfy the basic conditions and the other conditions relevant for the concession. More information can be found at Capital gains tax concessions for small business, which is available on our website ato.gov.au.