Private ruling: CGT - active asset
Date of advice: 14 January 2025
Published: 10 March 2025
Ruling period: X of XX 20XX to X of XX 20XX
Date scheme commenced: X of XX 20XX

Ruling: Q1: Do property 1 and property 2 satisfy the active asset test under section 152-35 of the ITAA 1997? | A1: 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.

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