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Edited version of private advice
Authorisation Number: 1051905255799
Date of advice: 28 October 2021
Ruling
Subject: CGT - small business concessions
Question
Will the Commissioner exercise the discretion under subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period to the XX XXXX 20XX?
Answer
Yes. Having regard to the particular circumstances of your case and the information provided, the Commissioner has applied his discretion to grant you further time to extend the replacement asset period pursuant to subsection 104-190(2) of the ITAA 1997 in respect of the small business CGT replacement asset rollover relief and will extend the replacement asset period to the XX XXX 20XX
This ruling applies for the following periods:
Year Ending 30 June 20XX
Year Ending 30 June 20XX
The scheme commences on:
X MM 20XX
Relevant facts and circumstances
You sold your property in MM 20XX
This resulted in a capital gain
You chose to apply the mall business capital gain roll-over
You had a period of 2 years to have purchased a replacement asset to roll-over the capital gain. The date the contract of original sale was signed was XX XXXX 20XX.
A contract on a new property was secured within the two-year time limit.
You advised in a phone call to the tax officer that the new property contract fell through and the sale is no longer going ahead.
Due to various circumstances outside your control such as the covid-19 pandemic, it is taking longer than the two-year period to secure a new asset.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 104-190(2)