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Edited version of private advice
Authorisation Number: 1051519781942
Date of advice: 20 May 2019
Ruling
Subject: Capital gains tax - small business concessions
Question
Will the Commissioner exercise his discretion under subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the time limit to allow the small business capital gains tax (CGT) concessions to be applied?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner is able to apply his discretion under section 152-80 of the ITAA 1997 and allow an extension of time. Further information on death and the small business CGT concessions can be found on our website, ato.gov.au by searching quick code QC52292.
This ruling applies for the following period
Year ended 30 June 20XX
The scheme commences on
1 July 20XX.
Relevant facts
The deceased acquired land after 20 September 1985.
The deceased passed away in 20XX.
The deceased carried on a primary production business on the land.
The deceased left a number of beneficiaries. The beneficiaries were unable to agree on how the various parcels of land were to be distributed.
A lengthy legal dispute arose between the executor and the beneficiaries in relation to the agreed values of the parcel.
The dispute was resolved in 20XX.
The land was ultimately transferred to one of the beneficiaries.
If the deceased had disposed of the land immediately prior to their death, the deceased would have been eligible to claim the small business CGT concessions in relation to the land.
Title to the land was transferred from the executors to one of the beneficiaries in 20XX.
Relevant legislative provisions:
Income Tax Assessment Act 1997 Section 152-80
Income Tax Assessment Act 1997 Subsection 152-80(3)