Private ruling: CGT - Small business concessions - deceased estate - extension of time
Date of advice: 15 November 2019
Published: February 2020
Ruling period: 1 July 2019 to 30 June 2020
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise his 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 (CGT) concessions to be applied? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner is able to apply the discretion under section 152-80 of the ITAA 1997 and allow an extension of time until a specific date (settlement date) in relation to the disposal of Property A. 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: The deceased acquired farmland and a cattle grazing business upon the death of the deceased's spouse several decades ago. The deceased continued to run the cattle grazing business on the farmland until the deceased's death in 20XX. The land consisted of several subdivided lots and some of the lots were sold prior to their death. After the deceased's death, their estate has continued to run the cattle grazing business on the farmland. The remaining farmland lots were placed on the market for sale by the Executor of the Estate in 20YY. The Estate has completed ongoing activities such as weed eradication, fence construction and maintenance in an effort to assist in the disposal of the farmland. The Estate disposed of most of the blocks over a period of time and applied the small business CGT concessions to the sales. The last block, Property A, was subsequently sold more than two years after the deceased's death. The deceased continuously owned the farmland for more than 15 years. The deceased would have qualified for the small business concessions if they had disposed of the farmland immediately prior to their death.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 152-80 | Income Tax Assessment Act 1997 subsection 152-80(3)