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Edited version of your private ruling
Authorisation Number: 1012603810151
Ruling
Subject: CGT - Small business concessions
Question
Will the Commissioner exercise his discretion under paragraph 152-180(3) of the Income Tax Assessment Act 1997 (ITAA 1997) and allow an extension of time to the two year period?
Answer
Yes.
This ruling applies for the following periods:
Year ended 30 June 2013
Year ended 30 June 2014
Year ended 30 June 2015
Year ended 30 June 2016
The scheme commences on:
1 July 2012
Relevant facts and circumstances
The deceased's estate is relatively large.
The deceased held rural properties which had been used in farming since 199X. The farming land has been difficult to sell in the current economic climate for acceptable prices.
There are a number of joint executors and this has presented administrative issues and delays in conducting the estate business due to their locations.
Certain aspects of the estate have been challenged and this has delayed the ability to fulfil certain bequests. One beneficiary is still challenging the estate.
The deceased would have been entitled to access the small business CGT concessions prior to their death.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 150-80(3).
Reasons for decision
According to the Advance guide to capital gains tax concessions for small business 2012-13, if you are a beneficiary of a deceased estate you may be eligible for the concessions to the same extent that the deceased would have been just prior to their death.
You will be eligible for the concessions where the CGT event happens within two years of the individual's death. The active asset test applies to you for any capital gain made on a sale of the assets after the two year time limit. This means that if you do not continue to carry on the deceased's business, or use the asset in another business, after the two year time period the active asset test may not be satisfied and the small business concessions may not be available.
However, in appropriate circumstances, the Commissioner may extend this two year period. The abovementioned guide also provides the relevant considerations applied by the Commissioner to extend the two year period.
Having regards to your full circumstances and the above principles, the Commissioner will allow an extension of time.