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Edited version of private advice
Authorisation Number: 1052092350817
Date of advice: 10 March 2023
Ruling
Subject: CGT - small business concession - deceased estate
Question
Will the Commissioner exercise the discretion under subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the two-year period in relation to the disposal of the interest in the Property you acquired following the deceased's death?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner is able to apply the discretion under subsection 152-80(3) of the ITAA 1997 and allow an extension of time until the property was sold.
For further information on death and the CGT small business concessions visit ato.gov.au and search for 'QC 52292'.
Further Information to Consider
The private ruling has been limited to the Commissioner's exercise of the discretion under subsection 152-80(3) of the ITAA 1997 to allow an extension of the two-year period. The Commissioner has not considered whether the deceased would have met the conditions required to apply the small business CGT concessions. Further information on 'small business CGT concessions' can be found on our website by searching QC 22655.
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ended 30 June 20XX
The scheme commences on:
XX October 20XX
Relevant facts and circumstances
You and your spouse purchased a property in 20XX.
The Property was used in a farming business by you and your spouse in a partnership for approximately X years.
The Property was used as an active asset for the required X year period.
Your spouse unexpectedly passed away.
There were several factors outside your control that delayed the sale of the property.
The property was sold in XX 20XX.
You qualify for the Division 152 small business CGT concessions for the 50% interest in the property that you have always owned.
Your spouse would have been able to meet all the requirements of Division 152 and access the small business CGT concessions had they sold the property immediately prior to death.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 152-80