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Edited version of private advice
Authorisation Number: 1052078035953
Date of advice: 25 January 2023
Ruling
Subject: Small business concessions - property
Question
Will the Commissioner exercise the discretion under subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the time limit to allow the small business capital gains tax concessions to be applied in relation to the Property?
Answer
Yes
Having considered your circumstances and the relevant factors, including the impacts of COVID-19 impeding both the administration of the estate and dealing with the Property, the Commissioner will exercise the discretion under subsection 152-80(3) of the ITAA 1997 and allow an extension of time.
This ruling applies for the following period:
Income year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The deceased ran a business from multiple properties including but not limited to the Property.
The deceased passed away in early 20XX.
Lockdowns due to the COVID-19 pandemic posed restrictions that caused significant delays to the administration of the estate including the executor's ability to lodge probate, preventing the executor and beneficiaries from accessing all assets and limiting real estate activities.
Grant of probate was issued after delays.
A legal personal representative was subsequently recorded on both titles and the Property transferred to beneficiaries of the deceased estate.
The beneficiaries owned the Property as tenants in common.
The Property was listed for sale soon after it was transferred to the beneficiaries. A contract of sale was signed approximately two years and two months after the deceased death. The Property has now settled.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 152-80(3)