Private ruling: Commissioner's discretion to extend the time period to purchase a replacement asset
Date of advice: 29 September 2020
Published: November 2020
Ruling period: Year ending 30 June 20XX | Year ended 30 June 20XX
Date scheme commenced: X October 20XX

Ruling: Q1: Will the Commissioner exercise his discretion under section 104 - 190(2) of the Income Tax Assessment Act 1997 to extend the replacement asset period? | A1: Yes. Having considered your circumstances and the relevant factors the Commissioner considers it appropriate to grant an extension of the replacement asset period. Further information can be found by searching 'QC 52291' on ato.gov.au Additional information We have limited our ruling to the question raised in your application being whether an extension of time will be granted. The Commissioner has not considered your edibility for the small business CGT concessions in this ruling. You should ensure that you satisfy the basic conditions and any other relevant conditions.

Relevant facts and circumstances: You reported a capital gain event in your 20XX tax return electing to roll over a portion of the capital gain on disposal. The gain was realised from the disposal of a farming property, which you owned a portion. An amount was identified to be rolled over to be used on a replacement asset. You have been actively looking for a replacement asset and have inspected numerous properties with the intention of purchasing a suitable property to continue your business activity. You have commenced negotiations on several properties and have bid at auctions unsuccessfully. Due to drought the number of suitable properties has been limited. The drought conditions broke resulting in the acquisition of a suitable property, with settlement to occur by XX December 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-190