| Disclaimer You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1051994415050
Date of advice: 30 June 2022
Ruling
Subject: CGT - small business concessions
Question
Will the Commissioner exercise the discretion under subsection 152-80(3) Income Tax Assessment Act 1997 (ITAA 1997) to extend the time limit to apply the small business capital gains tax concessions to the deceased's interest in the property?
Answer
Yes, after taking into consideration, the type of property and the location, one attempted sale falling through, listing the property with two different real estate agents and COVID-19 restrictions making the sale difficult, the Commissioner will allow an extension of time beyond two years to XX July 20XX as per subsection 152-80(3) of the ITAA 1997 to apply the CGT small business concessions.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You and your late spouse purchased a property after 20 September 1985 as joint tenants.
Your spouse passed away on XX January 20XX, and their interest in the property passed to you as a joint tenant.
The property was used by a connected entity to operate a business since acquisition.
The deceased would have met the basic conditions to apply the CGT small business concessions in relation to their interest in the property just before their death.
The business continued to operate after your spouse died until October 20XX, although due to Covid-19 causing a downtown in travel due to lockdowns the decision was made to cease the business and sell the property.
It has been challenging to find potential buyers due to the property being zoned as light commercial and location of the property.
The property was placed on the market through a real estate agent.
An offer was made by a neighbour to purchase the property in November 20XX, although the offer fell through due to not being able to acquire the necessary finance.
A second real estate agent was engaged in January 20XX.
The property was sold with a contract date of XX July 20XX.
Relevant legislative provisions
Subsection 152-80(3) Income Tax Assessment Act 1997
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
