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Edited version of private advice
Authorisation Number: 1052355985734
Date of advice: 30 January 2025
Ruling
Subject: Commissioner Discretion - extension of time
Question 1
Will the Commissioner extend the replacement asset period until XX June 20XX, pursuant to subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer 1
Yes.
This ruling applies for the following period:
Year ending XX June 20XX
The scheme commenced on:
XX July 20XX
Relevant facts and circumstances
The Trustee as the trustee for the Trust entered a contract to sell its assets on X November 20XX.
The Contract of Sale included a Restraint of Trade clause.
The Contract of Sale included a Post Completion Engagement clause.
The Trustee chose to apply the small business CGT rollover concession to the capital gain made.
X November 20XX was two years after the contract was formed to sell the assets.
Since the sale of the asset, the Trustee has been actively looking to purchase an asset.
The Trustee used online websites.
In 20XX, the Trustee looked at approximately XX potential assets.
The assets have not been suitable due to them being located in premises that have been affected by natural disaster, are at risk of demolition or have not been successful in their location.
The Trustee has posted 'looking to buy' messages/notices.
The Trustee found a suitable practice however was unsuccessful in acquiring.
The Trustee recently made an offer to lease a premises which is pending approval from the lessor and review as to the suitability of the premises. The Trustee did not purchase the asset as the parties could not agree on the terms of the contract.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-190
Income Tax Assessment Act 1997 section 152-40
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