Private ruling: Income Tax – small business concessions – extension of time for a deceased estate.
Date of advice: 30 May 2018
Published: September 2018
Ruling period: Year ending 30 June 20XX
Date scheme commenced: XX January 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 two year time limit? | A1: Yes. In this instance we consider that you have provided a reasonable explanation for the delay in the disposal of the CGT asset. We do not consider allowing this request would cause the unsettling of others. Accordingly, the Commissioner will exercise his discretion under subsection 152-80(3) of the ITAA 1997 to extend the time period.

Relevant facts and circumstances: The Deceased had ownership interests in farming land purchased after 20 September 1985. The deceased acquired a 50% interest in the property in 19XX and added further ownership interests at various times prior to their death. The property was used in the operation of a business that the deceased carried out as a sole trader. At a point in time the farming land and livestock were rented for a period of time to a third party. At the date of death the deceased satisfied all the conditions under Subdivision 152A of the ITAA 1997 to access the small business concessions in relation to the small business 15 year exemption and the small business retirement exemption. The deceased passed away early 20XX leaving a life tenant to occupy the farm land. The life tenant passed away mid 20XX. The deceased’s Will was contested and settled on mid 20XX. The property was sold on late 20XX, with settlement being mid 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 section 152-80