Private ruling: Commissioner's discretion - deceased estates
Date of advice: 30 August 2023
Published: 9 October 2023
Ruling period: Financial year ending 30 June 2022.
Date scheme commenced: 1 July 2021

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 (CGT) concessions to be applied to the sale of the Property? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner will provide the discretion allowing the extension of time.

Relevant facts and circumstances: You and your spouse Purchased the Property as joint tenants. The Property was fully dedicated to a business you operated in partnership with your spouse. Your spouse passed away and you acquired their interest in the Property as surviving joint tenant. The Property was an active asset of your spouse at the date of their death, and your spouse would have satisfied the eligibility criteria for the CGT small business concessions. You placed the Property on the market after your spouse's death whilst continuing to operate the business. Restrictions and uncertainty associated with the COVID-19 pandemic effected the successful sale of the Property as interested parties were not able conduct inspections due to quarantine orders and travel restrictions. The Property sold and settled with the contract executed several months after the two-year limit allowed under paragraph 152-80(1)(d) of the ITAA 1997.

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