Assets that probably won't count as active assets for Capital Gains Tax (CGT) Small Business Concessions (SBCs), based on Eichmann’s FC case:
1. Separate Storage or Administration Facility for a Construction Business
- Example: A builder's separate building and land used to store tools.
- Why it might not qualify: Even though it's used by the construction business, it's not essential for the day-to-day work on construction sites.
2. Offsite Storage for a Professional Firm
- Example: A law firm's warehouse for storing old documents.
- Why it might not qualify: Even though it's used by the firm, it might not be necessary for their daily business operations.
3. Tradesman’s Home Office and Garage
- Example: A plumber's home office and garage for storing tools.
- Why it might not qualify: Since it's only part of the plumber's home, it might not be considered an active asset. Also, it's not directly used for the plumbing work, even though it's related to the business.
4. Professional Consultant’s Home Office
- Example: An IT consultant's home office for developing software.
- Why it might not qualify: Similar to the plumber, since it's only part of the home, it might not count. Even though it's used for work, it might not meet the criteria for being essential to the business.
5. Hairdresser’s Salon in a Home Garage
- Example: A hairdresser's garage turned into a salon.
- Why it might not qualify: Like the others, since it's part of the home, it might not be seen as an active asset. Even though it's used for the business, it might not meet the requirements.
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