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Edited version of private advice
Authorisation Number: 1052368550343
Date of advice: 03 March 2025
Ruling
Subject: CGT - small business concessions
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 for the property to be disposed of so the small business capital gains tax (CGT) concessions can be applied to the deceased estate's portion of the proceeds from the CGT event?
Answer 1
Yes. The Commissioner will exercise their discretion under subsection 152-80(3) of the ITAA 1997 to extend the period, allowing the deceased's estate to access the small business concessions for the caravan park disposed of under the CGT event. In consideration of all the facts and circumstances, including the delay in the sale of the property being caused by circumstances the trustee of the estate experienced after their spouse's passing, there are no factors that would suggest allowing further time would not be fair and reasonable. Therefore, the Commissioner will exercise the discretion.
This ruling applies for the following periods:
Year ended XX June 20XX
The scheme commenced on:
October 20XX
Relevant facts and circumstances
In 20XX, the deceased and their spouse purchased the property. They ran a business on the property under a trust and were beneficiaries to this trust.
In 20XX, the deceased became diagnosed with an illness and the property was leased to a non-related entity.
In 20XX, the deceased passed away. This was during the COVID-19 pandemic.
After the deceased's passing, their spouse became the trustee of their estate.
The deceased had obtained limited support while grieving with their spouse's passing.
In 20XX, the property was sold.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 152-80(3)