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Edited version of private advice
Authorisation Number: 1052240819036
Date of advice: 17 April 2024
Ruling
Subject: CGT - replacement asset period
Question
Will the Commissioner exercise the discretion in subsection 104-190(2) of the Income Tax Assessment Act 1997 to extend the replacement asset period to 30 June 2025?
Answer
Yes. The director of your corporate trustee has been actively looking for a replacement asset; however, due to the illness of their family member and their role as the sole carer of their elderly family members a replacement asset has not been acquired. The Commissioner will exercise the discretion and extend the replacement asset period to 30 June 2025.
This ruling applies for the following period:
Year ended 30 June 2025
The scheme commences on:
1 July 2024
Relevant facts and circumstances
You are a discretionary trust.
You have a corporate trustee.
You sold an active asset and made a capital gain.
You chose to apply the capital gains tax small business roll-over to the capital gain you made on the disposal of the active asset.
The director of your corporate trustee has been actively looking for a replacement asset and had some under consideration when their family member was diagnosed with an illness. Since the diagnosis the director has taken on the sole carer role for both of their elderly family members.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 104-190(1A)
Income Tax Assessment Act 1997 subsection 104-190(2)
Income Tax Assessment Act 1997 section 104-197
Income Tax Assessment Act 1997 section 104-198
Income Tax Assessment Act 1997 Subdivision 152-E