Private ruling: Capital gains tax and deceased estate
Date of advice: 1 December 2020
Published: January 2021
Ruling period: Year ending 30 June 20XX
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) and allow an extension of time until Month X 20XX? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner is able to apply his discretion under subsection 152-80(3) of the ITAA 1997 and allow an extension of time until Month X 20XX. Further information on the relevant factors of 'death and small business CGT concessions' generally can be found on our website ato.gov.au and entering Quick Code QC52292 into the search bar at the top right of the page.

Relevant facts and circumstances: Mr & Mrs X acquired vacant land prior to the introduction of CGT which they used to conduct a farming business. Mr X passed away on the XX/XX/XXXX. His ownership of the property passed to his spouse, Mrs X. Mrs X held ownership of the property (comprising 50 percent acquired prior to the introduction to CGT and 50 percent acquired on XX/XX/XXXX) and continued to conduct a farming business on the property until she passed away on the XX/XX/XXXX and her children were appointed as the Executors of her estate. On XX/XX/XXXX, a property conveyancer agreed to act as the agents for the estate on the proposed sale. The property was initially listed on the XX/XX/XXXX and an initial investor made a formal offer of $X on the XX/XX/XXXX however they didn't proceed as the buyer was unable to acquire finance. In early XXXX another party showed interest however proceedings were stalled due to buyer circumstances and then further delays due to the COVID 19 pandemic and government restrictions. The buyers made an offer of $X which was accepted on the XX/XX/XXX with contracts signed on the XX/XX/XXX and XX/XX/XXXX and settlement occurring on XX/XX/XXXX.

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