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Edited version of private advice
Authorisation Number: 1051689651095
Date of advice: 28 May 2020
Ruling
Subject: Capital gains tax - small business concessions - deceased estate - extension of time
Question
Will the Commissioner exercise the discretion under subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997) and allow an extension of time to allow the small business capital gains tax (CGT) concessions to be applied?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner is able to apply the discretion under section 152-80 of the ITAA 1997 and allow an extension of time.
Further information on death and the small business CGT concessions can be found on our website, ato.gov.au by searching quick code QC52292.
This ruling applies for the following period:
1 July 2019
The scheme commences on:
30 June 2018
Relevant facts
The deceased acquired farmland and a primary production business in 19xx. The farmland consisted of a number of lots.
One of the lots was sold in 20xx. A number of the lots were transferred to beneficiaries under the terms of the will of the deceased.
The deceased continued to operate the business on the land up until their death.
The deceased passed away in 20xx.
After the deceased's death, the estate has continued to run the business on the farmland and commenced the process of sale.
A dispute arose between the beneficiaries in relation to one of the lots.
The dispute was resolved however it caused delays in preparing and placing the remaining farmland for sale.
The Trustee placed the farmland on the market and settlement for the sale occurred in 20xx.
The deceased continuously owned the farmland for more than 15 years.
The deceased would have qualified for the small business concessions if they had disposed of the farmland immediately prior to her death.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 152-80
Income Tax Assessment Act 1997 subsection 152-80(3)
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