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Edited version of private advice
Authorisation Number: 1051632414919
Date of advice: 4 February 2020
Ruling
Subject: Extension of time for SB CGT Concession
Question
Will the Commissioner, pursuant to subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997), grant an extension of time to XX/XX/2019 to allow the small business capital gains tax (CGT) 15-year exemption to be applied?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner will allow an extension of time.
We have limited our ruling to the question raised in your application being whether an extension of time will be granted. You advised that the deceased would have been eligible to apply the small business CGT 15-year exemption if the deceased had disposed of the property immediately prior to their death. The private ruling on whether an extension of time will be granted was issued on this basis, that is, the Commissioner did not consider the deceased's eligibility for the small business CGT 15-year exemption. Further information about the small business CGT concessions can be found by searching for 'QC 22165' on www.ato.gov.au
This ruling applies for the following period:
Year ended 30 June 2019
The scheme commences on:
1 July 2018
Relevant facts and circumstances
The farming property was jointly purchased by you and your spouse approximately 20 years ago.
Your spouse died in XX/201X
A number of circumstances contributed to the sale of the property taking place more than two years after your spouse passed away including a challenge to the Will and you suffering a debilitating illness for a period.
The property was farmed continuously in your family partnership until the death of your spouse and then by you as a sole trader until the sale as a going concern.
If the deceased had disposed of the property just prior to their death, they would have been eligible to claim the small business CGT 15-year exemption.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 152-80