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Edited version of private advice
Authorisation Number: 1052303761099
Date of advice: 11 October 2024
Ruling
Subject: CGT - active asset
Question
Does the property, satisfy the active asset test pursuant to section 152-35 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
Yes. You have owned the property for more than 15 years and it was used in the course of carrying on a business by you, your affiliate, or an entity connected with you, for at least 7.5 years during the ownership period. Therefore, the property satisfies the active asset test in section 152-35 of the ITAA 1997.
This ruling applies for the following period:
Year ended 30 June 2024
The scheme commenced on:
1 July 2023
Relevant facts and circumstances
You purchased the property over 15 years ago.
For over half of the ownership period the property was used either in a business carried on by you or by a company that you owned the majority of shares in.
After ceasing your business, you leased the property to a third party.
A contract of sale for the property was signed and the property sold.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 152-35