Private ruling: CGT - small business concessions - extension of time for a deceased estate
Date of advice: 1 March 2021
Published: April 2021
Ruling period: Income year ended 30 June 20XX | Income year ended 30 June 20YY
Date scheme commenced: AABBCC

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 for the sale of the business property until DDMMYY? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner is able to apply the discretion under subsection 152-80(3) of the ITAA 1997 and allow an extension of time until the settlement date of DDMMYY for the commercial property. Further information on the small business CGT concessions and how they apply when someone has passed away can be found on our website: ato.gov.au by searching quick code QC52292.

Relevant facts and circumstances: You are the executor of your mother's deceased estate. You're the deceased passed away on DDMM 20WW. Probate was delayed due to an issue involving a government department. The deceased owned a commercial property. A private company (the Company) has conducted a business from this property for many years. The deceased was a director of the Company initially and sole shareholder in recent years until her death. You have been a director of the Company since 200X and sole shareholder since the deceased's death. You ran the business at the property for a number of years. Since the deceased passed away you tried to cease business and sell the property. Besides the delay in probate, the type of property also limited its sale potential. You have sold the property and ceased business. The property settled on DDMMYY. The Deceased was eligible to apply the small business CGT concessions prior to their death.

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