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Laurasusan(Enthusiast)Enthusiast
7 Feb 2025

Question:

  • A warehouse was purchased and used as an active asset for business purposes for 5 years.
  • The business was sold, and the property was rented out for an additional 4 years before being sold, making the total ownership period 9 years.
  • Is the owner entitled to capital gains tax discounts, such as the Retirement Exemption, if:
    • The owner is over 55 years old at the time the property is sold.
    • The owner is currently working part-time at the time of the sale.
  • Additionally, if the owner is under 55 years old, does the 50% Active Asset Reduction still apply?


306 views
3 replies
306 views
3 replies

Most helpful response

Most helpful reply

AriATO(Community Support)Community Support
16 Feb 2025

Hi @Laurasusan


This is too tricky to answer here. You need specific advice from us so we can consider everything.


You only need to meet the basic conditions for the Small business 50% active asset reduction. Unlike other concessions there's no additional criteria.


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Most helpful reply

AriATO(Community Support)Community Support
16 Feb 2025

Hi @Laurasusan


This is too tricky to answer here. You need specific advice from us so we can consider everything.


You only need to meet the basic conditions for the Small business 50% active asset reduction. Unlike other concessions there's no additional criteria.


Laurasusan(Enthusiast)Enthusiast
3 Mar 2025

Thank you ATO!


Since all basic conditions for the Small Business 50% Active Asset Reduction are met, is the owner entitled to the Retirement Exemption, if they are over 55 years old when the warehouse is sold (even though the owner was under 55 when the business was sold)?


BrookeATO(Community Support)Community Support
25 Mar 2025

Hi @Laurasusan


As Ari said, you'll need specific advice to work out if you're eligible or not.


There are more things to consider in your scenario since the business was sold before the warehouse. It'd be best to work with one of our experts to get the most accurate answer.

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Eligibility for CGT Discounts: Retirement Exemption and 50% Active Asset Reduction | ATO Community