Private ruling: CGT event of a small business asset
Date of advice: 20 May 2021
Published: August 2021
Ruling period: Year ended DD MM YYYY
Date scheme commenced: DD MM YYYY

Ruling: Q1: Will the Commissioner exercise discretion under subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997) and extend the two-year period to DD MM YYYY? | A1: Yes. Having considered the circumstances and factors, the Commissioner will exercise discretion under subsection 152-80(3) of ITAA 1997 and extend the two-year period to DD MM YYYY. For further information visit ato.gov.au and search for 'QC 52292'.

Relevant facts and circumstances: ABC and XYZ each obtained a 50% ownership interest in a property used for income producing purposes. On DD MM YYYY, ABC passed away. ABC had a Will with a number of beneficiaries. On DD MM YYYY, probate of the Will was granted. XYZ was the Executor of the Will (the Executor). On DD MM YYYY, a third party made an expression of interest in the property and you commenced negotiating the terms for the Contract of Sale. On DD MM YYYY, negotiations for the property ceased. On DD MM YYYY, XYZ made an offer to purchase the property and some of the beneficiaries filed a Notice of Motion with the Supreme Court. Under the direction of the Supreme Court XYZ could not proceed with the acquisition. On DD MM YYYY, XYZ pursued finance for the acquisition of the property however the beneficiaries did not consent to the proposed acquisition. Subsequently, a real estate agent was engaged and the property was publicly listed for sale. On DD MM YYYY, a Contract of Sale for the property was entered into. ABC would have met the conditions to apply the CGT Small Business Concessions, if the property had been disposed of immediately before ABC's death.

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