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Edited version of private advice
Authorisation Number: 1051854360730
Date of advice: 30 June 2021
Ruling
Subject: Small business concessions
Question
Will the Commissioner exercise discretion under subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997) and extend the two-year period to DD MM YYYY?
Answer
Yes. Having considered the circumstances and factors, the Commissioner will exercise discretion under subsection 152-80(3) of ITAA 1997 and extend the two-year period to DD MM YYYY. For further information visit ato.gov.au and search for 'QC 52292'.
This ruling applies for the following periods:
Year ended DD MM YYYY
The scheme commences on:
DD MM YYYY
Relevant facts and circumstances
Person A and Person B acquired a farm as a partnership.
Person A and Person B used the farm for income producing purposes.
Person A passed away.
Person A had a Will and Person B was appointed Executor of the Will.
Probate (of the Will) was not required and the farm was transferred to Person B on a survivorship basis.
Person B ensured the farm was available for sale as soon as possible however received a lack of interest due to COVID-19 and the social and economic effects on the market.
Person B sold the farm in the 20xx/xx financial year however there are water rights attached to the farm which cannot be released until the 20xx/xx financial year.
The deceased would have met the conditions for the small business concessions just prior to their death.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 152-80(3)