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Edited version of private advice
Authorisation Number: 1051936441103
Date of advice: 22 December 2021
Ruling
Subject: Capital gains tax- small business concession
Question
Will the Commissioner exercise his discretion under subparagraph 152-35(2)(b)(ii) of the Income Tax Assessment Act 1997 (ITAA 1997) and extend the 12 month period?
Answer
Yes.
Considering your circumstances and the relevant factors, the Commissioner will exercise his discretion. Accordingly, the active asset test period will be from the date of acquisition in August 20YY to August 20YY following Person A's death. As the property was used in a business for more than half of this period, it will satisfy the active asset test.
This ruling applies for the following periods:
Year ending 30 June 2022
The scheme commences on:
DD MM YYYY
Relevant facts and circumstances
Person A and Person B (the partners) established a partnership, purchased a property and commenced operating a small business.
Person A and Person B commenced proceedings to dissolve the partnership and disputed the separation of assets, specifically the property.
Person A passed away (the Deceased).
Person B continued to dissolve the partnership and dispute the separation of assets, now with the Executor of the Deceased's Estate.
Person B and the Executor of the Deceased's Estate reached an agreement and sold the property.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 152-35