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Edited version of private advice
Authorisation Number: 1052118203000
Date of advice: 24 May 2023
Ruling
Subject: CGT - deceased estate
Question
Will the Commissioner exercise the discretion in subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the time limit to 30 June 20XX to allow the small business capital gains tax concessions to be applied to the disposal of the Property?
Answer
Yes. Having considered your circumstances and the relevant factors, including the finalisation of the legal proceedings impeding the administration of the estate and delays caused by the natural disaster, the Commissioner will exercise the discretion in subsection 152-80(3) of the ITAA 1997 to extend the time limit to 30 June 20XX for you to dispose of the Property.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
The Deceased passed away leaving a Will.
The Deceased bequeathed the Property to you in their Will.
The assets of the Deceased's estate were subject to a legal dispute.
The Property was impacted by bush fires resulting in severe loss of fencing, pasture, and scrubland.
A resolution to the claim made against the assets of the Deceased's estate was agreed in principle between the parties and the parties signed a deed confirming the particulars and the claim was resolved.
Soon after the claim was resolved the Property passed to you as a beneficiary of the Deceased's estate.
Completion of the repairs to the fencing took longer than anticipated due to difficulties finding available fencing contractors. The shortage of contractors was caused by a combination of the large number of properties requiring repairs following the bush fires and the COVID-19 pandemic.
The fence repairs were completed, and the property was placed on the market.
You sold the Property before 30 June 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 152-80