| Disclaimer You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1051750023510
Date of advice: 14 September 2020
Ruling
Subject: Income tax - small business concessions - extension of time for a deceased estate
Question
Will the Commissioner exercise his discretion under subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the two year time limit?
Answer
Yes. In this instance we consider that you have provided a reasonable explanation for the delay in disposal of the CGT asset. We do not consider allowing this request would cause the unsettling of others. Accordingly, the Commissioner will exercise his discretion under subsection 152-80(3) of the ITAA 1997 to extend the time period to settlement.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commences on:
01 July 20XX
Relevant facts and circumstances
The Deceased operated a Primary Production activity being a beef cattle farm as a sole trader.
Prior to their death the Deceased would have been eligible to utilise the Small business CGT concessions.
The Deceased passed away, with probate being granted to the Legal Personal Representatives (LPRs) who continued to operate the small business enterprise.
Market analysis of the property was conducted, with the property being listed for sale.
The LPRs have endeavoured to sell all assets of the Estate of the Deceased, circumstances beyond their control, including drought, have resulted in the asset of active farming land, not being sold and settled within two years of the date of death of the Deceased.
Offers on the drought impacted property have been limited. Initial offers were received in January 20XX and July 20XX. With an offer for sale accepted April 20XX, however notification was received from the purchaser that they would not proceed with the purchase.
A final offer was received with settlement occurring.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 subsection 152-80(3)