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Edited version of private advice
Authorisation Number: 1051782659444
Date of advice: 20 November 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 ending 30 June 2021
The scheme commences on:
1 July 2019
Relevant facts and circumstances
You were granted a remainder interest in a piece of land.
During the previous 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