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Edited version of private advice
Authorisation Number: 1051857285585
Date of advice: 25 June 2021
Ruling
Subject: Small business concessions - active assets
Question
Is the Property an active asset under subdivision 152-A of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
Yes.
You satisfy the conditions of the active asset test as a connected entity has used the Property for the entire period of your ownership of the Property in the course of carrying on a business and the main use of the Property was not to derive rent. Further information can be found by searching 'QC 52271' on ato.gov.au.
This ruling applies for the following period:
Year ending 30 June XXXX
The scheme commences on:
30 June XXXX
Relevant facts and circumstances
The Partnership owns a Property.
You leased out a portion of the property.
You used the remaining property for storage for you connected entities business. The Partnership has continuously used the Property since they purchased it as storage for plant and equipment as well as stock for the business. The business has just over $XXX in turnover each year.
From XXX up to the sale of the Property in the XXXX financial year, the Partnership has been using the Property only for storage of all plant, equipment and inventory/materials for the business of an associated company. The company is classified as a small business.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subdivision 152-A