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Edited version of private advice
Authorisation Number: 1052036271257
Date of advice: 27 September 2022
Ruling
Subject: CGT - deceased estate - small business concessions
Question
Will the Commissioner's discretion be exercised under subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the 2-year time limit to allow the small business capital gains tax (CGT) concessions in relation to the disposal of the properties to be applied until DD MM YYYY?
Answer
Yes.
Having considered your circumstances and the relevant factors, the Commissioner will exercise the discretion under subsection 152-80(3) of the ITAA 1997 and allow an extension of time to DD MM YYYY. The delays in granting probate and ongoing dispute with family members delayed your ability to dispose of the properties earlier.
Further information on 'death and small business capital gains tax (CGT) concessions' can be found on our website by searching QC 52292.
Further information for you to consider
The private ruling has been limited to the question requested upon application which is whether the Commissioner can exercise discretion under subsection 152-80(3) of the ITAA 1997 to allow an extension of the 2-year period. Therefore, the Commissioner has not considered whether the Deceased was in fact entitled to the small business CGT concessions. Further information on 'small business CGT concessions' can be found on our website by searching QC 22655.
This ruling applies for the following period:
Year ended 30 June 20YY
The scheme commences on:
1 July 20YY
Relevant facts and circumstances
On DD MM YYYY, the Deceased passed away.
The Deceased owned some properties.
The Deceased carried on a business on the properties.
There were legal disputes and delays in probate being granted.
There was a dispute between family members that were not included in the Will.
The properties were sold at auction in the 20YY financial year.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 152-80(3)
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