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Edited version of private advice
Authorisation Number: 1051845753165
Date of advice: 29 May 2021
Ruling
Subject: Income tax - CGT
Question
Will the Commissioner exercise his discretion under section 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period to DD MM YYYY?
Answer
Yes. Having considered the relevant facts, the Commissioner will apply his discretion undersubsection 104-190(2) of the ITAA 1997 and allow an extension of the time to DD MM YYYYto purchase a replacement asset.
This ruling applies for the following periods:
Year ended DD MM YYYY
The scheme commences on:
DD MM YYYY
Relevant facts and circumstances
You purchased a commercial property.
You sold the commercial property.
Under section 152-10 of the ITAA 1997, you satisfy the basic conditions for CGT Relief and have elected to apply the Small Business Roll-Over Concession in Subdivision 152-E of the ITAA 1997.
Within the replacement asset period, you identified and entered a contract to purchase a replacement asset however the contract of sale fell through due to finance.
Five months post the replacement asset period, you successfully acquired a replacement asset.
The delay in purchasing a property was difficult because the area experienced a drought.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-190