Private ruling: Active asset test
Date of advice: 7 April 2021
Published: June 2021
Ruling period: Year ended DD MM YYYY
Date scheme commenced: DD MM YYYY

Ruling: Q1: Is Property B considered an active asset under subdivision 152-A of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. Property B satisfies the requirements of an active asset and the active asset test set out in subdivision 152-A of the ITAA 1997.

Relevant facts and circumstances: You are the directors and only shareholders of Company X. Company X carries on a business. Company X is primarily operating on and out of Property A. You acquired Property B for use by Company X in their business operations. You disposed of Property B. You made a capital gain from the sale of Property B. Property B has only been used for income producing purposes.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subdivision 152-A