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Edited version of private advice
Authorisation Number: 1052118662387
Date of advice: 22 May 2023
Ruling
Subject: CGT - small business replacement asset rollover
Question
Will the Commissioner exercise the discretion in subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period to acquire a replacement asset?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner considers it appropriate to grant an extension of the replacement asset period.
This ruling applies for the following periods:
Year ending 30 June 20XX
Year ending 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
You sold your asset in the financial year ending 30 June 20XX, resulting in a capital gain which was rolled over under Subdivision 152-E of the ITAA 1997.
COVID-19 and the demand for similar assets hindered your ability to acquire a replacement asset prior to the replacement asset period ending.
Due to the initial issues finding a replacement asset, you had considered either making payment of the retirement exemption to complying superannuation fund under paragraph 152-305(1)(c) of the ITAA 1997 or to fund the income tax payable on a J5 capital gain.
You had funds stolen resulting in a large financial loss.
You now need additional time to release equity from other properties to fund the replacement asset.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 104-190(2)
Income Tax Assessment Act 1997 Subdivision 152-E