| Disclaimer You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1051973177624
Date of advice: 26 April 2022
Ruling
Subject: CGT small business concessions
Question
Will individual A and individual B satisfy the condition outlined in subparagraph 152-10(1)(c)(iii) of the Income Tax Assessment Act 1997 (ITAA 1997) on the disposal of properties?
Answer
Yes.
The Commissioner is satisfied that individual A and individual B are partners in a partnership, and that the properties are CGT assets of the partnership.
This ruling applies for the following periods:
Year ending 30 June 20XX
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You are partners in a partnership.
The partnership has retained the same ABN since it was issued.
The partnership operates a primary production business which has commenced.
The properties have been assets of the partnership since the date they were acquired.
Each partner owns a 50% interest in the properties.
The partnership has leased the properties to another entity that is not connected to the partnership, individual A, or individual B for the purposes of subdivision 328-C of the ITAA 1997.
The primary production business activity is conducted on other land held by the partnership.
In prior income years the partnership has had an aggregated turnover less than $X million.
You anticipate that the aggregated turnover for the partnership in future income years will remain less than $X million.
Relevant legislative provisions
Income Tax Assessment Act 1997 Division 152
Income Tax Assessment Act 1997 Subparagraph 152-10(1)(c)(iii)
Income Tax Assessment Act 1997 Subsection 152-10(1AA)
Income Tax Assessment Act 1997 Subdivision 328-C
Income Tax Assessment Act 1997 Paragraph 108-5(1)(a)
Income Tax Assessment Act 1997 Paragraph 108-5(2)(c)
Income Tax Assessment Act 1997 Paragraph 108-5(2)(d)