Private ruling: CGT – Small business concessions – deceased estate - EOT
Date of advice: 23 February 2019
Published: May 2019
Ruling period: Year ended 30 June 2018
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise his discretion under section 152-80 of the Income Tax Assessment Act 1997 (ITAA 1997) and allow an extension of time until XX XXXX 20XX? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner is able to apply his discretion under section 152-80 of the ITAA 1997 and allow an extension of time until XX XXXX 20XX (settlement date) in relation to the disposal of Lot X. Further information on death and the small business CGT concessions can be found on our website, ato.gov.au by searching quick code QC52292 | Q2: Will the Commissioner exercise his discretion under section 152-80 of the ITAA 1997 and allow an extension of time until XX December 20XX? | A2: Yes. Having considered your circumstances and the relevant factors, the Commissioner is able to apply his discretion under section 152-80 of the ITAA 1997 and allow an extension of time until XX December 20XX (settlement date) in relation to the disposal of Lot X. Further information on death and the small business CGT concessions can be found on our website, ato.gov.au by searching quick code QC52292

Relevant facts and circumstances: The deceased acquired property and a business upon the death of their spouse on XX XXXX 19XX. The deceased continued to run the business on the property until their death on XX XXXX 20XX. The property was approximately XX hectares in total, which consisted of X separate parcels of land. The deceased subdivided one of the parcels of land into X blocks. The deceased sold X subdivided blocks in 20XX and 20XX, prior to their death. After the deceased’s death, the estate has continued to run the business on the property. The remaining property, X parcels of land and X subdivided blocks were placed on the market for sale by the Executor of the Estate in 20XX. The Estate has completed ongoing activities on the property in an effort to assist in the disposal of the property. The estate disposed of 2 subdivided blocks, one of which contained the deceased’s main residence, on XX XXXX 20XX and XX XXXX 20XX. The last subdivided block (Lot X) has been sold with settlement occurring on XX XXXX 20XX. One parcel of land (Lot X) has also been sold with settlement occurring on XX XXXX 20XX. There is X parcel of land remaining in the Estate which remains on the market for sale. The deceased continuously owned the farmland for more than 15 years. The deceased would have qualified for the small business concessions if she had disposed of the farmland immediately prior to their death.

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