Private ruling: Income tax – capital gains tax – small business concessions – extension of time
Date of advice: 8 January 2019
Published: April 2019
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise his discretion under subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the time limit to XX XXXX XXXX to allow the small business capital gains tax (CGT) 15 year exemption to be applied in relation to the capital gain resulting from the sale of the Property? | A1: Yes. After considering your circumstances and the factors, the Commissioner has exercised his discretion to extend the time limit to XX XXXX XXXX to allow the small business 15 year exemption to be applied in relation to the capital gain from the sale of the Property. Further issues for you to consider We have limited our ruling to the question raised in your application being whether an extension of time will be granted. You advised that the deceased would have been eligible to apply the small business CGT concessions if the deceased had disposed of the property immediately prior to their death. The private ruling on whether an extension of time will be granted was issued on this basis, that is, the Commissioner did not consider the deceased’s eligibility for the small business CGT concessions. Further information about the concessions can be found by searching for 'QC 22165' on www.ato.gov.au

Relevant facts and circumstances: The deceased passed away in 20XX. The deceased acquired the Property in XXXX. The deceased carried on a business on the Property during the entire period of ownership, a period exceeding 15 years. The deceased would have been eligib le to apply the small business 15 year exemption if they had disposed of the Property immediately prior to their death. Following the death of the deceased a dispute arose between the children of the deceased in relation to the Will. The dispute was resolved on X XXXXX XXXX when a Heads of Agreement was entered into between the parties. A Court issued orders on X XXXXX XXXX. The Property was sold shortly after the dispute was resolved.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 152-80 | Income Tax Assessment Act 1997 section 152-105