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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)