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Edited version of private advice
Authorisation Number: 1051679048035
Date of advice: 13 May 2020
Ruling
Subject: Replacement asset period
Question
Will the Commissioner exercise his discretion under subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 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 his discretion and will extend the asset replacement period to XX/XX/XXXX.
This ruling applies for the following period:
Year ended 30 June 20xx
Year ended 30 June 20xx
Year ended 30 June 20xx
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
In the 20XX financial year you made a capital gain.
On XX/XX/XXXX you were advised by your accountant that you were eligible to apply the small business rollover in subdivision 152-E of the Income Tax Assessment Act 1997 to the capital gain, which you did with the intention of purchasing a replacement asset.
During the time remaining of the two year period to obtain a replacement asset, you examined three business opportunities, however each opportunity fell through.
Since the expiry of the two year period, you have continued to make efforts to acquire a replacement asset. You have now settled on an appropriate business and started finalising plans to purchase the replacement asset. You anticipate being able to acquire the replacement asset by XX/XX/XXXX.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subsection 104-190(2)
Income Tax Assessment Act 1997 Subdivision 152-E