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Edited version of private advice
Authorisation Number: 1051656237492
Date of advice: 07 April 2020
Ruling
Subject: Extension of time replacement asset
Question
Will the Commissioner extend the replacement asset period?
Answer
Yes. Having considered your circumstances and the relevant factors the Commissioner considers it appropriate to grant an extension of the replacement asset period. Further information on the factors can be found by searching 'QC 18383' on ato.gov.au
This ruling applies for the following periods:
Year ending 30 June 2020
Year ending 30 June 2021
Year ending 30 June 2022
The scheme commences on:
1 July 2019
Relevant facts and circumstances
In 20XX you and your spouse signed a contract for the sale of your jointly owned property.
The property was used in the primary production business conducted by a related company.
You and your spouse made a capital gain on the sale of your ownership interests in the property and you applied the small business rollover to defer the capital gain you made on the sale of the property.
You and your spouse have been actively seeking to purchase a replacement property within the two year period, but you have been unsuccessful in acquiring a property.
Due to drought conditions over the past three years the number of properties on the market has been limited or those on the market are not suitable, for example poor steep or heavily forested and eroded land that is not profitable and banks will not finance in an agricultural loan.
You are seeking properties in the region near your main farming business.
You have engaged the services of property agents to assist you with locating a replacement farming property suitable for your farming business and within your price range.
Properties coming on to the market have improved as the region recently received some rain.
Two suitable properties were marketed recently, but you were unsuccessful in acquiring either property.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 104-185(1)
Income Tax Assessment Act 1997 Section 104-190(2)
Income Tax Assessment Act 1997 Subdivision 152-E