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Edited version of private advice
Authorisation Number: 1052363470464
Date of advice: 19 February 2025
Ruling
Subject:Commissioner's discretion - deceased estate
Question 1
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 30 June 20YY to allow the relevant small business capital gain tax (CGT) concessions to be applied in relation to the capital gain resulting from the sale of the property?
Answer
Yes.
Having considered the circumstances, including the reasons for the delay and the time outside of the 2-year period that the sale occurred, it is reasonable to allow an extension of the time limit until 30 June 20YY.
This ruling applies for the following period
Year ended 30 June 20YY
The scheme commenced on:
1 July 20YY
Relevant facts and circumstances
The business premise a commercial property purchased after 19 September 1985.
You owned the commercial property, where you and your spouse operated the business, for more than 15-years.
You used the commercial property in carrying on your business for more than half of the period of ownership. The commercial property was rented after the business ceased.
The business aggregated turnover was less than $2 million per annum.
Your spouse passed away and was over the age of 55 years when they passed. You were and still are unwell after your spouse's passing.
Unsuccessful attempts were made to sell the property prior to your spouse's passing. The property is now being sold in two parts, within a year of the 2-year period from your spouse's passing.
The value of the net assets was less than $6 million at the time of the CGT event.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 152-10
Income Tax Assessment Act 1997 subsection 152-35
Income Tax Assessment Act 1997 subsection 152-40
Income Tax Assessment Act 1997 subsection 152-80
Income Tax Assessment Act 1997 subsection 152-105