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Edited version of private advice
Authorisation Number: 1052153249764
Date of advice: 8 September 2023
Ruling
Subject: CGT small business roll-over - extension of time to acquire replacement asset
Question
Will the Commissioner exercise his discretion under subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period in respect to a capital gains tax (CGT) small business roll-over?
Answer
Yes, having considered your circumstances and the relevant factors, the Commissioner will use the available discretion to grant you further time to acquire a replacement asset.
This ruling applies for the following periods:
Year ending 30 June 2023
Year ending 30 June 2024
The scheme commenced on:
1 July 2022
Relevant facts and circumstances
You were owners of a farming property which was sold in the 2020-21 financial year.
You elected to apply the CGT small business roll-over in Subdivision 152-E to your capital gains in your amended 2020-21 income tax return.
There has been a limited supply of suitable replacement properties impacting your ability to acquire a replacement asset withing the statutory time frame.
COVID-19 restrictions have also impacted your ability to find a replacement asset.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subdivision 152-E
Income Tax Assessment Act 1997 subsection 104-190(2)