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Edited version of private advice
Authorisation Number: 1051629479544
Date of advice: 24 January 2020
Ruling
Subject: Capital Gains Tax - Extension of time to make a choice for the retirement exemption to apply Small Business Concessions
Question
Will the Commissioner grant an extension of time under paragraph 103-25(1)(b) of the Income Tax Assessment Act 1997 to make a choice to apply the small business retirement exemption concession.
Answer
Yes
Taking into consideration of your circumstances the Commissioner will grant an extension, to allow you to choose to apply the small business retirement exemption concession.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You reported a capital gains tax event in your income tax return.
You meet the basic conditions to apply the small business CGT concessions.
You are over 55 years of age.
The gain was realised from the sale of a property owned in partnership.
The 50% small business active asset CGT discount was automatically applied to reduce your gain.
You wish to apply the retirement exemption you have not made a written choice as required by legislation.
The value you will elect to disregard under the retirement exemption will not result in you exceeding the $500,000 small business CGT concession cap.
Relevant legislative provisions
Income Tax Assessment Act 1997 paragraph 103-25(3)(b)