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Edited version of private advice
Authorisation Number: 1051643551921
Date of advice: 6 March 2020
Ruling
Subject: Small business concessions
Question
Will the Commissioner exercise the 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 on the sale of the properties?
Answer
Yes. Having considered your circumstances and the relevant facts, the Commissioner will exercise the discretion under subsection 152-80(3) of the ITAA 1997 and allow an extension of time.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You and your spouse operated a primary production business on post-CGT property you owned as joint tenants.
Your spouse passed away on XX/XX/XXX. Your spouse would have been eligible to apply the small business 15-year exemption in relation to the property immediately prior to their death.
You inherited their share of the property and continued primary production operations.
You entered into a call option agreement with Company A on XX/XX/XXXX which requires you to sell the property to Company A when the call option is exercised. The call option period will expire on XX/XX/XXXX.
You intend to apply the small business 15-year exemption to the sale of the Properties to the extent that your spouse was eligible to.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 152-80(3)