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Edited version of private advice
Authorisation Number: 1051582352677
Date of advice: 17 September 2019
Ruling
Subject: Capital gains tax - small business concession - deceased estate - extension of time
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 considers it appropriate to grant an extension of time to access the small business concessions. Further information can be found by searching 'QC 52292' on ato.gov.au.
This ruling applies for the following period:
Year ended 30 June 2020
Year ended 30 June 2021
Year ended 30 June 2022
Year ended 30 June 2023
The scheme commences on:
1 July 2019
Relevant facts and circumstances
The deceased passed away in 20XX.
The deceased inherited in 19xx farming land from their parents.
The deceased operated a primary production business on land up until their death.
The deceased held business assets which included farming land, stock and a significant amount of plant stored on the land.
The will of the deceased named a number of beneficiaries with varied proportions.
The executors named in the will appointed a firm of solicitors to administer the estate as they felt that the complexity of the estate required legal expertise to manage the affairs of the deceased appropriately.
You both were informed in 20xx by the solicitor managing the estate that you were named as a beneficiary in the will of the deceased.
Probate was granted in 20xx.
Title to the land was transferred to you both after a period of time.
You have been actively trying to sell the land. A potential purchaser failed to complete the purchase due to financial constraints.
You have been negotiating with a new purchaser and have entered into a contract to sell the land in 20xx.
The deceased would have met the conditions for the small business concessions just prior to their death.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 152-80
Income Tax Assessment Act 1997 section 152-80(3)