Private ruling: Commissioner's discretion - deceased estates
Date of advice: 16 May 2023
Published: 3 July 2023
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise their discretion under subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the time limit to allow any available small business capital gains tax (CGT) concessions to be applied to the sale of the Property? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner is able to apply the discretion under subsection 152-80(3) of the ITAA 1997 and allow the extension of time.

Relevant facts and circumstances: You conducted a contracting business in partnership with your spouse. You and your spouse jointly acquired the Property after 20 September 1985. The Property was actively utilised in the contracting business for over XX years. You have been actively trying to sell the Property for more than X years. Your spouse recently passed away. The Property did not sell until more than two years after your spouse's death. The sale of the Property was affected by limited demand in the regional market, flood events occurring in the locality of the Property and COVID-19 restrictions. Your spouse would have been entitled to disregard the capital gain from the sale of the Property under Division 152 of the ITAA 1997 if the CGT event had happened immediately before their death

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