Private ruling: CGT - small business concessions - inherited property
Date of advice: 31 May 2023
Published: 17 July 2023
Ruling period: Year ending 30 June 2023 | Year ending 30 June 2024
Date scheme commenced: 1 July 2022

Ruling: Q1: Will the Commissioner exercise the discretion in subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the time limit to allow the small business capital gains tax concessions to be applied to the disposal of the property? | A1: Yes. Having considered your circumstances and the relevant factors, including the impacts of COVID-19 and the difficulties in sourcing tradespeople, the Commissioner will exercise the discretion in subsection 152-80(3) of the ITAA 1997 and extend the time limit.

Relevant facts and circumstances: You are the sole beneficiary of your relative who passed away. Your deceased relative owned a property in a country town. Your relative operated a business on the property. Your relative did not have a will. You were required to apply for Letters of Administration. The title for the property was transferred to you after a lengthy delay. You and your partner operate a business that is a long distance from the property. Travelling between and attending to the 2 properties has been difficult due to the distance and COVID-19 restrictions. The house on the property was severely rundown and in need of substantial work to ready it for sale. The boundary fences were in disrepair and many had to be replaced. COVID-19 restrictions delayed you from getting the property to a saleable position. You experienced difficulties sourcing tradespeople and materials to fix the property.



Relevant legislative provision: Income Tax Assessment Act 1997 subsection 152-80(3)