Private ruling: Extension of time to access small business concessions
Date of advice: 15 July 2020
Published: August 2020
Ruling period: Year ending 30 June 2020
Date scheme commenced: 1 July 2019

Ruling: Q1: Will the Commissioner, pursuant to subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997), allow an extension of time to allow the small business capital gains tax (CGT) concessions to be applied? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner will allow an extension of time to allow the relevant small business concessions to be applied. 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: Your partner was the sole owner of a property that was a post CGT asset and used to run beef cattle. Your partner died. Your partner's Will stated the property could not be sold until it was transferred to you as a beneficiary. The solicitors took six months to transfer property to you. After the property was transferred to you there was a hold up putting property on the market due to the Will of your partner stating that the property had to be sold and the proceeds split three ways. Your partner's sibling was responsible for organising the parties involved to get the property on the market. During this period the sibling was the primary carer of their parent who was unwell and in and out of hospital. This made it difficult for the three parties to come together to organise the sale. The property was put on the market and the price was reduced to secure a buyer. The property was sold two and a half months outside of the two year time limit. From the date of your partner's death the property was vacant and not used to produce any income and no improvements were done to the property. If your partner had disposed of the property just prior to their death, they would have been eligible to apply the small business CGT concessions.

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


Subject: Extension of time to access small business concessions: Client name: Linda Molinaro