Private ruling: CGT - extension of time to obtain replacement asset
Date of advice: 14 November 2024
Published: 13 January 2025
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion in subsection 104-190(2) of the Income Tax Assessment Act 1997 to extend the replacement asset period to acquire a replacement Asset? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner considers it appropriate to grant an extension of the replacement asset period.

Relevant facts and circumstances: You disposed of an Asset. You applied the small business rollover as a replacement Asset to the gain from the sale. Soon after the disposal of the Asset, you became the subject of a police investigation and were incarcerated. As a result, you have been restricted in managing your affairs and therefore have not been able to purchase the Asset as intended in the 2-year rollover timeframe. Your spouse is currently acting as Power of Attorney and is working to secure replacement Assets that fulfill the conditions required for the small business rollover.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-190 | Income Tax Assessment Act 1997 subdivision 152-E