Private ruling: Capital gains tax: active asset: CGT small business concessions
Date of advice: 24 April 2019
Published: June 2019
Ruling period: Year ending 30 June 2019 | Year ending 30 June 2020 | Year ending 30 June 2021 | Year ending 30 June 2022
Date scheme commenced: 1 July 2018

Ruling: Q1: Is the property an active asset? | A1: Yes. The Commissioner is satisfied that the use of the property meets the conditions contained in section 152-40 of the Income Tax Assessment Act 1997 . | Q2: Are you able to access the CGT small business concessions? | A2: Yes. The Commissioner considers that Company A is connected to you and is a CGT small business entity.

Relevant facts and circumstances: You own the property. You built some commercial units with a total floor area of xxxx square metres on the property. Some units comprise of less than 50% of the available floor space. One unit comprises of more than 50% of the available floor space. Some units are leased to unrelated third parties. One unit is leased to Company A for use in their business. Company A is a CGT small business entity. Company A is an entity connected to you. You will sell the property.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-50 | Income Tax Assessment Act 1997 section 152-10 | Income Tax Assessment Act 1997 section 152-35 | Income Tax Assessment Act 1997 section 152-40