Private ruling: CGT - small business concessions - extension of time - deceased estate
Date of advice: 23 February 2021
Published: April 2021
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX
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 concessions to be applied in relation to the Property? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner will exercise the discretion under subsection 152-80(3) of the ITAA 1997 and allow an extension of time to XX/XX/XXXX.

Relevant facts and circumstances: The Deceased passed away. The Deceased had inherited an ownership interest in farmland (the Property) in 20XX. Prior to the Deceased's date of death, the Property was used by the Deceased in a farming business conducted in partnership with a sibling. The deceased would have been entitled to apply the small business concessions on the Property before passing away. Pursuant to the Will of the Deceased, the Property was to be transferred to the Deceased's two children (the Taxpayers) as beneficiaries of the Estate. The executors of the Estate were the Deceased's two siblings, and one of the Deceased's children. Following the Deceased death, the Deceased siblings took issue with the required distributions of the Deceased's property in accordance with the Will. Legal disputes arising from the challenge to the Will continued for more than two years from the date of the Deceased death, before they were resolved. Probate was granted prior to the resolution of the dispute with ongoing mediation resulting in an agreement that one of the Deceased siblings would purchase the Taxpayer's interest in the Property. Settlement of the Property occurred a short time later.

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