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Edited version of private advice
Authorisation Number: 1051999215223
Date of advice: 28 June 2022
Ruling
Subject: CGT - small business concessions
Question
Will the Commissioner exercise the discretion under subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period for the first assets and the second assets to XX/XX/20XX?
Answer
Yes.
Having regard to your full circumstances and the acceptable explanation for the period of extension you have requested, the Commissioner considers the extension would be fair and equitable. Further information on the small business rollover can be found on by searching 'QC 52291' on ato.gov.au.
This ruling applies for the following periods:
year ending 30 June 20XX
year ending 30 June 20XX
The scheme commences on:
1 January 20XX
Relevant facts and circumstances
You sold assets (the first assets) and made a capital gain after applying discounts. You applied the replacement asset rollover to the capital gain.
Around 6 months later you sold other assets (the second assets) and you expect to apply the replacement asset roll-over to the capital gain after discounts.
Within approximately one year of selling the first and second assets, you received an indication from the current owner of a property, that they were willing to sell. The property is located in Queensland.
You entered into discussions with the owner about the best structure to enable the sale, and a decision was made to strata title the property.
You will purchase one of the lots, after the property is strata titled. You have negotiated and agreed upon the sale price of the lot, as well as the allocation of joint outgoings moving forward.
You have not yet been able to acquire the lot as the replacement asset for the assets due to the following reasons:
• Various COVID-19 related delays impacted the completion of the strata title.
• The Queensland floods in February 2022 affected your other buildings and caused major delays.
You stated that the reasons for the delays are now resolved.
Your other stakeholders have been continually briefed and engaged to ensure that there are no further delays once the strata title is approved.
You believe that the transaction will comfortably be completed by 30 June 2023.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 104-190(2)
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