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Edited version of private advice
Authorisation Number: 1051910468806
Date of advice: 15 October 2021
Ruling
Subject: CGT - small business concession - deceased estate - extension of time
Question
Will the Commissioner exercise discretion under subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997) to grant an extension of time to the sale of the xxxx property on 30 June 2021?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner is able to apply the discretion under subsection 152-80(3) of the ITAA 1997 and allow an extension of time until the xxxx property was sold.
Further information on the small business concession and how they apply when someone has passed away can be found on our website by searching QC 52292.
Note: the private ruling has been limited to the question regarding whether an extension of time will be granted. You advised that the deceased would have been entitled to apply the small business concession on the post-CGT interest in the xxxx property before passing away. The private ruling on whether an extension of time will be granted was issued on this basis. Therefore, the Commissioner did not consider whether the deceased was in fact entitled to the small business CGT concessions. More information about the concessions can be found on our website by searching QC 22165 on ato.gov.au.
This ruling applies for the following period:
Year ended XX June 20XX
The scheme commences on:
XX July 20XX
Relevant facts and circumstances
The deceased held an interest in the xxxx property as a pre-CGT asset.
On XX June 19XX, the deceased inherited a further interest in the xxxx property when X passed away.
The xxxx property has been used for xxxx since the early 19XXs.
On XX November 20XX, the deceased passed away.
On XX May 20XX, executers were granted Probate of the Will.
The sale of the property was delayed due to claims against the Estate. These claims are from multiple parties since the date of death and were resolved in Month 20XX.
The property was sold in Month of 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 152-80
Income Tax Assessment Act 1997 subsection 152-80(3)