CGT Concessions for small business
- Thread starter de nero
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Hi
I have a working knowledge of them and access to further information if necessary. Was there anything in particular that you wanted to know?
Dale
I have a working knowledge of them and access to further information if necessary. Was there anything in particular that you wanted to know?
Dale
Hi Dale
My situation is as follows.
I have owned a business and the land it's built on for over 15 years. I have rented the business to my children for 6 out of the past 15 years.
The legislation says that in order for my business to pass the Active Asset Test, it has to be an active asset immediately before it is sold. Currently it is being rented by my children. I'm hoping to end the lease soon, assume management of the business again breifly before selling it.
In theory, if I ran the business for 1 day before selling it, it would pass the "just before" condition and I would pay no CGT.
My question is this: Is there a minimum period of time I would have to run the business immediately before selling it to satisfy the active asset test? ie , could I actually run it for 1 day to satisfy the active asset test?
Cheers
My situation is as follows.
I have owned a business and the land it's built on for over 15 years. I have rented the business to my children for 6 out of the past 15 years.
The legislation says that in order for my business to pass the Active Asset Test, it has to be an active asset immediately before it is sold. Currently it is being rented by my children. I'm hoping to end the lease soon, assume management of the business again breifly before selling it.
In theory, if I ran the business for 1 day before selling it, it would pass the "just before" condition and I would pay no CGT.
My question is this: Is there a minimum period of time I would have to run the business immediately before selling it to satisfy the active asset test? ie , could I actually run it for 1 day to satisfy the active asset test?
Cheers
Last edited:
In order to pass the active asset test there are actually two conditions.
1. as you stated the asset needs to be active just before the CGT event
(or within the preceeding 12 months or such longer period as the Commissioner allows where the business has ceased) AND
2. must also have been active for at least half of the period of ownership (subject to a maximum period of ownership of 15 years)
Another question as an aside are the land and buildings pre CGT (i.e purchased before Sept 1985) and therefore exempt from CGT.
1. as you stated the asset needs to be active just before the CGT event
(or within the preceeding 12 months or such longer period as the Commissioner allows where the business has ceased) AND
2. must also have been active for at least half of the period of ownership (subject to a maximum period of ownership of 15 years)
Another question as an aside are the land and buildings pre CGT (i.e purchased before Sept 1985) and therefore exempt from CGT.
