Private ruling: Land
Date of advice: 17 November 2017
Published: April 2018

Ruling: Q1: Will the proceeds from the sale of the subdivided land be a capital gain under section 104-10 of the Income Tax Assessment Act 1997 (ITAA 1997) that is subsequently disregarded under paragraph 104-10(5)(a) of the ITAA 1997? | A1: No, the proceeds from the sale of the subdivided land are not subject to the capital gains tax provisions. | Q2: Will the proceeds from the sale of the subdivided land be assessable income under section 6-5 or section 15-15 of the ITAA 1997? | A2: Yes, the proceeds from the sale of the subdivided land will be assessable income under section 6 - 5 of the ITAA 1997. | Q3: Will the land be converted to trading stock under section 70-30 of the ITAA 1997? | A3: Yes, the land, excluding the part(s) of the land described as residue/business land, will be converted to trading stock. | Q4: If the land is converted to trading stock, at what point in time does it become trading stock under 70-30 of the ITAA 1997? | A4: That part of the land that becomes trading stock does so from the time it was ventured into a business of profitable resale or property development, subdivision and sale.




Subject: Land: In order to protect the privacy and commercial in-confidence components of this private binding ruling the following summary is provided. | The commissioner has ruled on the following: