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Edited version of private advice
Authorisation Number: 1051881903258
Date of advice: 9 August 2021
Ruling
Subject: CGT - small business concessions
Question
Will the Commissioner exercise the discretion under subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the time limit to allow the small business capital gains tax concessions to be applied in relation to the Property?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner will exercise the discretion under subsection 152-80(3) of the ITAA 1997 and allow an extension of time to XX/XX/XXXX.
This ruling applies for the following period
Year ending 30 June 20XX
The scheme commences on:
10 December 20XX
Relevant facts and circumstances
The deceased owned a property (the Property) that had been used in a commercial business for many years.
The deceased passes away living in XXX died on the XX/month/20XX.
The Trustee of the Deceased's estate looked to then sell the Property and had to obtain probate in two states with the deceased residing in XXX and the property located in XXX.
In XX/month/20XX, two offers were considered the shorter contact was accepted but then withdrawn on the XX/month/20XX due to the Covid-19 pandemic.
From month/20XX to 20XX the Covid-19 pandemic significantly affected the ability to commercially operate and market the business.
Covid-19 state border closures caused further problems as the Property and the trustees were in three different states.
Second offer negotiations re-commenced late XX/month/20XX although Covid-19 caused unavoidable delays which required contract updates and extensions.
A contract was entered into on the XX/month/20XX and collapsed on the XX/month/20XX due to the buyer withdrawing for personal reasons
The property was immediately re-listed for sale on XX/month/20XX.
A further contract for sale has been entered into and is expected to settle by XX/month/20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 152-80(3)