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Edited version of private advice
Authorisation Number: 1051578548612
Date of advice: 27 November 2019
Ruling
Subject: CGT Small business concessions
Question
Will the Commissioner exercise his discretion under subsection 152-80(3) of the Income Tax Assessment Act 1997 to extend the time limit to XX XXXX XXXX to allow the small business capital gains tax concessions to be applied?
Answer
Yes. Having considered your circumstances and the relevant factors the Commissioner considers it appropriate to grant an extension of the time limit in which the concession may be applied. Further information can be found by searching 'QC 22165' on ato.gov.au
This ruling applies for the following period:
Year ended 30 June 201F
The scheme commences on:
1 July 201E
Relevant facts and circumstances
The deceased inherited the property in 198A with their parent.
When the parent died in 198B, the deceased inherited their half share of the property.
The property was used in a primary production business, and at the date of death the deceased was eligible for the small business capital gains concessions.
The deceased died in the 201C income year.
Probate was granted in the 201C income year.
There was an option over the property that dictated how the Will was to be administered. There were two different ways the Will could be administered based on if the option was exercised or not.
The option expired in the 201D income year.
The executors allowed the neighbour to grow crops cane on the property while they prepared to dispose of the properties.
The neighbour reimbursed the estate for the holding costs of the property.
The property was split up and was sold in the 201F income year.
Due to the nature of farming and the limited market for the properties it took considerably longer to sell than a normal property.
The estate still holds several properties that have been on the market for some time.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 152-80(3)