Private ruling: CGT - Small business concessions - deceased estate - extension of time
Date of advice: 11 December 2019
Published: February 2020
Ruling period: 1 July 2019 to 30 June 2020
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion under 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 (CGT) concessions to be applied in relation to the property? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner is able to apply the discretion under section 152-80 of the ITAA 1997 and allow an extension of time until the property was sold. 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 farmland (the property) and a cattle grazing business upon the death of the deceased's spouse several decades ago. The deceased was over 55 years of age at the time of passing. The deceased continued to run the cattle grazing business on the property until the deceased's death in 20XX. The deceased children were not satisfied with the will, and a deed of family arrangement was entered into. After the deceased's death, their estate began a process to destock the property in an effort to assist in the disposal of the farmland. The property was put up for sale and provisionally sold in 20XX. It was discovered that the land had access issues which delayed the sale of the property. The property was sold with settlement occurring in 2019. The deceased would have qualified for the small business concessions active asset retirement exemption if they had disposed of the property immediately prior to their death.

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