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Edited version of your written advice
Authorisation Number: 1051405462983
Date of advice: 27 July 2018
Ruling
Subject: Capital gains tax – Small business concession – extension of time
Question
Will the Commissioner exercise his discretion to extend the replacement asset period pursuant to subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) in respect of the small business capital gains tax (CGT) replacement asset roll-over relief?
Answer
Yes.
Having considered the relevant factors above, and the particular circumstances of your case, the Commissioner will exercise his discretion to extend the replacement asset period.
This ruling applies for the following periods:
Year ending 30 June 20XX.
Year ending 30 June 20XX.
The scheme commences on:
26 April 20XX.
Relevant facts and circumstances
You recently sold farm land.
You elected to utilise the small business rollover with the intention of acquiring a replacement asset.
You are also involved in a dispute in relation to a relative’s estate, of which you are a beneficiary. This has affected your ability to remain competitive when seeking a replacement asset.
Your relative’s estate is made up of substantial cash, shares and farm land.
You expected that your relative’s estate would have been administered within a reasonable period of time, and you would have been able to acquire a replacement asset within the two year period.
You expect the dispute to be settled within a number of months.
Prior to the end of the replacement asset period, you have made genuine attempts at acquiring a suitable replacement asset, including making tenders for suitable replacement properties.
Your agent has been actively looking for rural properties, acted as a nominated bidder and provided advice on a number of offers on your behalf.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subdivision 152-A
Income Tax Assessment Act 1997 Subdivision 152-E
Income Tax Assessment Act 1997 Subsection 104-185(1)
Income Tax Assessment Act 1997 Subsection 104-190(2)
Income Tax Assessment Act 1997 Section 104-197
Income Tax Assessment Act 1997 Section 104-198