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Am I entitled to small business CGT concessions for main residence used for home-based business?

Newbie

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If I purchased my main residence at 2017 under my personal name, and then started exclusively using part of residence for business (not rent) at 2019, and then continues to operate business until I sell the residence in the far future.

 

In this scenario, am I entitled to Small business 50% active asset reduction for Capital gain if I meed the basic conditions for the small business CGT concessions described in https://www.ato.gov.au/general/capital-gains-tax/small-business-cgt-concessions/basic-conditions-for...?

 

According to https://www.ato.gov.au/general/capital-gains-tax/small-business-cgt-concessions/small-business-50--a..., I only need to meet the basic conditions for the small business CGT concessions.

 

But the page https://www.ato.gov.au/general/capital-gains-tax/small-business-cgt-concessions/choosing-and-applyin... mentioned:

" If the capital gain is from a depreciating asset, you can't use any of the remaining small business CGT concessions. "

 

Is the main residence a depreciating asset?

 

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Devotee

Replies 0

@Ken_Cheng yes you would claim depreciation of  the business part of your main residcence so it wouldn't apply.

 

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Community Moderator

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Hi @Ken_Cheng ,

 

We will do some research on this one and get back to you as soon as we can.

Most helpful response

Devotee

Replies 0

@Ken_Cheng yes you would claim depreciation of  the business part of your main residcence so it wouldn't apply.