1 Does the property (Property) satisfy the active asset test pursuant to section 152-35 of the Income Tax Assessment Act 1997 (ITAA 1997) and the meaning of active asset pursuant to section 152-40 of the ITAA 1997?
1 Yes. The Property meets the definition of active asset under section 152-40 of the ITAA 1997 and satisfies the active asset test pursuant to section 152-35 of the ITAA 1997 as it was actively used to carry on your business for the entire ownership period. Question 2 Do you satisfy the basic eligibility conditions for the small business capital gains tax concessions under section 152-10 of the ITAA 1997 in relation to the sale of the Property? Answer 2 Yes. All basic eligibility conditions for the small business capital gains tax concessions under section 152-10 of the ITAA 1997 have been met as CGT event A1 happened when you disposed of the Property which resulted in a capital gain. You were a small business entity with an annual aggregate turnover of less than $2 million for the relevant income year. This ruling applies for the following period : Income year ended 30 June 20XX The scheme commenced on: 1 July 20XX
You acquired the Property to carry on your business in 20XY. You used the Property to run your business for the entire ownership period. You entered into a contract to sell the property in 20XX. The sale of your property resulted in a capital gain. Your annual aggregated turnover was less than $2 million for the relevant income years.
Income Tax Assessment Act 1997 section 104-10 Income Tax Assessment Act 1997 section152-10 Income Tax Assessment Act 1997 section152-35 Income Tax Assessment Act 1997 section152-40 Income Tax Assessment Act 1997 paragraph 152-40(4)(e) Income Tax Assessment Act 1997 section 328-110