We purchased a property larger than 2 hectares specifically intended and approved for short term rental (holiday accommodation). We purchased the property jointly as a couple and have run it for a decade for short-term rental using a partnership. The property has a main residence and multiple cabins for rent. The business income is under $100,000 per annum, so we are a 'small business'. We are intending to sell the property soon and expect it to be worth approx $1,000,000 more than we paid for it. We know we will be subject to CGT since the property is larger than 2 hectares and also has been used to produce income.
Does the whole property constitute an 'active asset' of the partnership and is therefore eligible for the small business CGT concessions? If not, can we separate out 2 hectares which includes our house but does not include the rental cabins to claim as our main residence, and if we do that can the rest of the property (i.e. the remaining land and rental cabins) constitute an 'active asset' for CGT purposes?
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