Edited version of private advice

Authorisation Number: 1052037116355

Date of advice: 27 September 2022

Ruling

Subject: Small business concessions - extension of time

Question

Will the Commissioner exercise his discretion under subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the time limit until DD MM YYYY to allow the small business capital gains tax concessions to be applied in relation to the sale of the Property?

Answer

Yes. Having considered your circumstances and the relevant factors the Commissioner considers it appropriate to grant an extension of the time limit in which the concessions may be applied. Further information can be found by searching 'QC 22655' on ato.gov.au

This ruling applies for the following period:

Year ended 30 June 20YY

The scheme commences on:

1 July 20YY

Relevant facts and circumstances

The deceased acquired the Property post-CGT.

The deceased died on DD MM YYYY.

The deceased used the Property in their primary production business. At the deceased's date of death the deceased was eligible for the small business capital gains concessions in relation to the Property.

There was an option over the property that dictated how the Will was to be administered. The option expired on DD MM YYYY.

The executors allowed the XXXX to XXXX on the Property while they prepared to dispose of the Property. The XXXX reimbursed the deceased's estate for the holding costs of the Property.

The Property was sold on DD MM YYYY.

Due to the nature of XXXX and the limited market for the properties it took considerably longer to sell than a normal property.

Relevant legislative provisions

Income Tax Assessment Act 1997 Subsection 152-80(3)