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Edited version of private advice
Authorisation Number: 1052156991354
Date of advice: 16 August 2023
Ruling
Subject: GST - deceased estates
Question
Will the Commissioner exercise discretion under subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997) and allow an extension of time until DD MM YYYY for the Small Business CGT Concessions to be applied?
Answer
Yes. Having considered the circumstances and the relevant factors the Commissioner considers it would appropriate to grant an extension of the time limit in which the concessions may be applied.
This ruling applies for the following period:
Income year ended 30 June 20XX
The scheme commenced on:
DD MM YYYY
Relevant facts and circumstances
The deceased acquired the property with their parent.
When the parent died, the deceased inherited their half share of the property.
The property was used in a primary production business, and at the date of death, the deceased was eligible for the small business capital gains concessions.
The deceased died on DD MM 20XX.
Probate was granted on DD MM 20XX.
There was an option over the property of the deceased, and the outcome of that option dictated how the Will was to be administered. There were two different ways the Will could be administered based on if the option was exercised or not.
The option expired on DD MM 20XX.
The executors allowed the neighbour to farm the property while they prepared to dispose of the properties.
The neighbour reimbursed the estate for the holding costs of the property.
Due to the nature of farming and the limited market for the properties it took considerably longer to sell than a normal property.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 152-10
Income Tax Assessment Act 1997 subsection 152-80(3)