Edited version of private advice

Authorisation Number: 1052045291221

Date of advice: 13 October 2022

Ruling

Subject: Deceased estate - small business rollover

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 and repairs that needed to be completed before the property could be sold, the conveyancing issues caused by the shed built across the boundary of the property and the delays caused by the Covid-19 pandemic, the Commissioner will allow an extension of time beyond two years to the DDMM 202X as per subsection 152-80(3) of the ITAA 1997 to apply the CGT small business concessions

This ruling applies for the following period

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

The scheme commences on:

1 July 202X

Relevant facts and circumstances

Property was acquired DDMM 199A by the deceased from their spouse who has passed away after a disputed will after a deed of agreement.

The Property was used as a business asset in a small livestock business.

Aggregated turnover of the business was under $X million.

The deceased passed away DDMM 201B

The Property had been run down requiring repairs.

Livestock needed to be sold.

Conveyancing issues caused delays with the sale which needed to be sorted before the Property could be sold.

Relevant legislative provisions

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