Death and the active asset test

Where you are one of the following you may be eligible for the concessions to the same extent that the deceased would have been just prior to their death:

• a beneficiary of a deceased estate
• a legal personal representative (executor)
• a surviving joint tenant
• a trustee or beneficiary of a testamentary trust (trust created by a will).

You will be eligible for the concessions where the CGT event happens within two years of the individual’s death. Otherwise the active asset test applies to you in the normal way for any capital gain made on a sale of the assets after the two-year time limit. This means that if you do not continue to carry on the deceased's business, or use the asset in another business, after the two-year time period, the active asset test may not be satisfied and the small business concessions may not be available.

The ATO can extend this two-year period.

See also:

• Death and the small business CGT concessions
• Making choices and requesting extensions
• Joint ownership