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Edited version of private advice
Authorisation Number: 1051833941899
Date of advice: 20 May 2021
Ruling
Subject: CGT event of a small business asset
Question
Will the Commissioner exercise discretion under subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997) and extend the two-year period to DD MM YYYY?
Answer
Yes. Having considered the circumstances and factors, the Commissioner will exercise discretion under subsection 152-80(3) of ITAA 1997 and extend the two-year period to DD MM YYYY. For further information visit ato.gov.au and search for 'QC 52292'.
This ruling applies for the following periods:
Year ended DD MM YYYY
The scheme commences on:
DD MM YYYY
Relevant facts and circumstances
ABC and XYZ each obtained a 50% ownership interest in a property used for income producing purposes.
On DD MM YYYY, ABC passed away.
ABC had a Will with a number of beneficiaries.
On DD MM YYYY, probate of the Will was granted.
XYZ was the Executor of the Will (the Executor).
On DD MM YYYY, a third party made an expression of interest in the property and you commenced negotiating the terms for the Contract of Sale.
On DD MM YYYY, negotiations for the property ceased.
On DD MM YYYY, XYZ made an offer to purchase the property and some of the beneficiaries filed a Notice of Motion with the Supreme Court. Under the direction of the Supreme Court XYZ could not proceed with the acquisition.
On DD MM YYYY, XYZ pursued finance for the acquisition of the property however the beneficiaries did not consent to the proposed acquisition. Subsequently, a real estate agent was engaged and the property was publicly listed for sale.
On DD MM YYYY, a Contract of Sale for the property was entered into.
ABC would have met the conditions to apply the CGT Small Business Concessions, if the property had been disposed of immediately before ABC's death.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 152-80(3)
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