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Edited version of private advice
Authorisation Number: 1051883328806
Date of advice: 12 August 2021
Ruling
Subject: Commissioners discretion for small business concessions for a deceased estate
Question
Will the Commissioner exercise discretion under the Income Tax Assessment Act 1997 (ITAA 1997) subsection 152-80(3) in relation to the sale of the property?
Answer
Yes
Having considered your circumstances and the relevant factors, the Commissioner is able to apply the discretion under Income Tax Assessment Act 1997 (ITAA 1997) subsection 152-80(3) and allow an extension of time.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The deceased owned various Capital Gains Tax (CGT) assets at the time of their death.
These assets devolved to the executors of the Estate under the will at the date of death.
The property is XXX land.
The property was used by the deceased in a primary production business for a long time.
A contract of sale in relation to the property was entered into with the time period between death of the deceased and the date of contract being more than two years.
The executors of the Estate took over the affairs of the business following the deceased's passing and continued running the enterprise as a rural business in preparation of the sale of the property.
The intention of the Executors was always to liquidate the assets of the Estate for distribution to beneficiaries.
At the time the executors took over the Estate, the property was in a declared drought area.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 152-80
Income Tax Assessment Act 1997 subsection 152-80(3)