Private ruling: CGT – small business concessions – EOT replacement asset
Date of advice: 14 November 2018
Published: February 2019
Ruling period: Year ended 30 June 2019 | Year ending 30 June 2020 | Year ending 30 June 2021
Date scheme commenced: 1 July 2018

Ruling: Q1: If you choose to apply the small business rollover to any remaining capital gain from the disposal of the properties, will the Commissioner exercise his discretion under subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period to XX October 20XX? | A1: Yes Having considered the relevant factors, and the particular circumstances of your case, the Commissioner has applied his discretion and will extend the asset replacement period to XX October 20XX.

Relevant facts and circumstances: On XX September 20XX you entered into contracts for the sale of the property, which will result in a capital gain. Under the contract for sale the following payments will be made: ● 10% deposit upon signing of contract; ● 30% payable on XX March 20XX; and ● Balance payable on settlement XX months from contract date. You have considered potential replacement properties within the replacement period, however the properties considered did not match your business needs. You are continuing to look for a suitable replacement property which is within your price range and matches your business needs.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 104-190(2)