Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1051622848705
Date of advice: 19 December 2019
Ruling
Subject: Replacement asset period
Question 1
Will the Commissioner exercise the discretion under subsection 104-190(2) of the Income Tax Assessment Act 1997 to extend the replacement asset period to XX/XX/XXXX?
Answer
Yes. Having considered the relevant factors, and the particular circumstances of your case, the Commissioner has applied the discretion and will extend the asset replacement period to XX/XX/XXXX.
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You owned a property that you used in primary production.
Both properties were sold in the XXXX year.
You were eligible to apply the small business active asset reduction to the sale of the property along with the 50% capital gains discount. You then decided to apply the small business rollover in subdivision 152-E of the Income Tax Assessment Act 1997 to the amount of $XXX,XXX with the intention of purchasing a replacement asset.
You immediately commenced looking for a replacement property to purchase.
You experienced medical issues starting in XX/XXXX which led to surgery and an extended recovery period.
Your ongoing medical issues have meant that you have not been able to maintain and run a primary production property and you have not been able to commit to purchasing a replacement asset within the replacement period.
You expect that you will recover from your medical condition and will be able to purchase a replacement asset by XX/XX/XXXX.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 104-190(2)