Edited version of private advice

Authorisation Number: 1052236689684

Date of advice: 27 March 2024

Ruling

Subject: Commissioner's discretion - deceased estates

Question

Will the Commissioner exercise their discretion under subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the time limit to allow any available small business capital gains tax concessions to be applied to the sale of an active asset?

Answer

Yes. Having considered the relevant circumstances, particularly in relation to the delays caused by disputes over the estate and the COVID-19 restrictions, the Commissioner will exercise the discretion under subsection 152-80(3) of the ITAA 1997 to allow an extension of time.

This ruling applies for the following period:

Year ending 30 June 2024

The scheme commenced on:

1 July 2023

Relevant facts and circumstances

The deceased traded as a primary producer.

The land that the farm operated on was transferred under the deceased's will to their estate and continued to be used as primary production land.

The executors of the deceased's will are their children, the deceased's partner and their child.

Approximately six months after the deceased died communication broke down between the executors.

Time was spent trying to communicate between the parties to decide what to do with the farm while trying to run the farm.

Both parties needed to get independent advice from their own solicitors to complete a deed and settle the estate.

COVID-19 restrictions made meeting more difficult as no one was able to meet in person.

The properties were sold over 2 years after the deceased's death.

Relevant legislative provisions

Income Tax Assessment Act 1997subsection 152-80(3)