| Disclaimer You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1052178569490
Date of advice: 16 October 2023
Ruling
Subject: CGT - small business exemption
Question
Do the small business CGT 15-year exemption rules apply to the sale of this property to allow the capital gain to be disregarded in the estate income tax return for the year ended 30 June 2023?
Answer
Yes, small business CGT 15-year exemption rules apply to the sale of this property to allow the capital gain to be disregarded in the estate income tax return for the year ended 30 June 2023. The taxpayer held the property in joint ownership for more than 15 years and while they weren't 55 years when they died, they were permanently incapacitated.
This ruling applies for the following period:
Year Ending 30 June 2023
The scheme commenced on:
June 2021
Relevant facts and circumstances
The deceased taxpayer (the deceased) owned 50% of the property, as tenants in common with their business partner (partner), who owned the remaining 50%.
The deceased and their partner operated a business (the business) from the property for over 15 years to the deceased's date of death in 20XX.
The estate then effectively held the deceased interest in the property until its sale in 20XX.The partner continued to operate the business from the property until 20XX, when the preparation for the sale began.
The property sold in 20XX.
The business and its affiliates and connected entities have assets less than $6,000,000.
The sale of the property occurred within two years of the date of death.
The deceased was incapacitated and terminally ill.
Relevant legislative provisions
Income Tax Assessment Act section 152-10(1)
Income Tax Assessment Act section 152-15
Income Tax Assessment Act section 152-35
Income Tax Assessment Act section 152-80
Income Tax Assessment Act section 152-105
Income Tax Assessment Act Division 152