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Edited version of private advice
Authorisation Number: 1052007950772
Date of advice: 18 July 2022
Ruling
Subject: CGT - small business concessions
Question
Will the Commissioner exercise the discretion under subsection of the 152-80(3) Income Tax Assessment Act 1997 (ITAA 1997) to extend the time limit for the legal personal representative (LPR) to apply the small business capital gains tax concessions to the sale of the deceased's property?
Answer
Yes, after taking into consideration the work required to prepare the property for sale, including the damage and repair required of the solar water heater, the travel required to the property by the legal personal representative, and the COVID-19 travel restrictions making the sale difficult, the Commissioner will exercise his discretion and extend the 2-year period of disposal from the X June 20XX to XX January 20XX as per subsection 152-80(3) of the ITAA 1997 to apply the CGT small business concessions.
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 a farm (property).
The deceased passed away on the XX June 20XX at XX years old.
Due to the age and health of the deceased, the property had been deteriorating and needed extensive work completed before it could be sold.
You (the LPR) work full time and carried out most of the repairs and maintenance to the property.
You live approximately X kilometres away from the property.
You made X trips in helping to prepare the property for sale.
While preparing the property for sale, a water heater burst, flooding the house on the property and resulting in a significant clean up.
The property was placed on the market for sale in March 20XX.
Due to market conditions and travel restrictions from the Covid-19 pandemic made it difficult to find a buyer.
A contact was signed for the sale of the property on XX January 20XX.
Relevant legislative provisions
Subsection 152-80(3) Income Tax Assessment Act 1997