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Edited version of private advice
Authorisation Number: 1051950531002
Date of advice: 17 February 2022
Ruling
Subject: Small business CGT concessions - active asset
Question
Is the commercial property considered an active asset for the purposes of Division 152 of the ITAA 1997?
Answer
Yes. The Property was owned by the Trust for less than 15 years, during which time the Property was used or held ready for the use in the course of carrying on a business by a connected entity for at least half of the test period. On this basis the Property satisfies the active asset test. Further information can be found searching 'QC 52271' on ato.gov.au
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 July 2021
Relevant facts and circumstances
You acquired a commercial property in XXX XXX.
The property is leased to a connected entity and has been used solely to run and operate the connected entity's business since the property was purchased.
You are considering selling the property.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 152-35
Income Tax Assessment Act 1997 section 152-40