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Edited version of private advice
Authorisation Number: 1051902507198
Date of advice: 22 September 2021
Ruling
Subject: CGT - small business concessions
Question
Is the property considered to be an active asset under section 152-40 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
Yes. It is considered that the property was used in the partnership business for a total of at least 7 ½ years during the test period and you have owned it for more than 15 years therefore it is considered an active asset. Further information can be found by searching 'QC 52271' on ato.gov.au.
This ruling applies for the following period:
Year ending 30 June XX
The scheme commences on:
XX Month 20XX
Relevant facts and circumstances
The partnership purchased a property on XX Month 20XX.
Each partner held a third share in the property.
The property was used for farming activities and harvesting plant matter to be used in the business. You also used the property for storing various pieces of plant and equipment for the business.
The affiliated business ceased all operation in 20XX.
The property was sold on XX Month 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 152-40