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Edited version of private advice
Authorisation Number: 1052344641238
Date of advice: 14 January 2025
Ruling
Subject: CGT - active asset
Question 1
Do property 1 and property 2 satisfy the active asset test under section 152-35 of the ITAA 1997?
Answer 1
Yes. Property 1 and property 2 have been owned for more than 15 years. The Commissioner accepts that both properties have been used in the course of carrying on a business by a connected entity, the partnership, for more than XX years during the ownership period. Therefore, both property 1 and 2 satisfy the active asset test.
This ruling applies for the following period:
X of XX 20XX to X of XX 20XX
The scheme commenced on:
X of XX 20XX
Relevant facts and circumstances
Person 1 and Person 2 acquired property 1 on X of XX 19XX
Person 1 and Person 2 acquired property 2 on X of XX 19XX
A main residence was constructed on property 2.
Both properties were used to carry on a hobby farm until person 1 and person 2 transitioned to a primary production business.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 152-35
Income Tax Assessment Act 1997 section 152-40