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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

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Edited version of private advice

Authorisation Number: 1051649315494

Date of advice: 20 March 2020

Ruling

Subject: CGT - small business concessions - active asset

Question

Is your remainder interest in the land an active asset under section 152-40 of the Income Tax Assessment Act 1997?

Answer

Yes. Your remainder interest in the subject land is an active asset as the land was used by an entity connected with you in the course of carrying on a business and the main use of the land wasn't to derive rent. Further information on active assets can be found by searching 'QC 52272' on ato.gov.au

This ruling applies for the following period:

Year ended 30 June 2020

The scheme commences on:

1 July 2019

Relevant facts and circumstances

You were granted a remainder interest in a piece of land.

During the current income year, an entity that is connected with you carried on its business on the land.

You do not conduct a business in your own right.

The land is not being used for rent or agistment purposes.

It is proposed that you will dispose of your remainder interest.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 152-40