Private ruling: Extension of time to apply the capital gains tax small business concessions
Date of advice: 18 September 2019
Published: November 2019
Ruling period: Year ended 30 June 2019
Date scheme commenced: 1 July 2018

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 a specific date to allow the small business capital gains tax (CGT) concessions to be applied on the property? | A1: Yes. Having considered the information provided and the relevant factors of the situation being ruled on, the Commissioner is able to apply the discretion under section 152-80 of the ITAA 1997 and allow an extension of time to the specific date. Further information can be found on our website, ato.gov.au, by searching quick code 'QC52292'.

Relevant facts and circumstances: You are beneficiaries under the will of a relative (the deceased) who passed away over two years ago. One of the assets in the Estate was a family property (the property). The property has been in the family for decades, being purchased by the deceased's late spouse before 20 September 1985. The deceased and the spouse conducted a farming business in partnership on the property until the spouse's death after 20 September 1985. The deceased inherited the property at that time and continued to operate the business in partnership with two of the children. This partnership continued until the deceased and one of the children retired from the partnership several years ago. The business was transferred to the remaining partner and the partner's spouse who continued to operate the business until the sale of the property. The sale of the property was delayed in part due to the emotional upheaval of selling a long held family asset, together with the last partner and the partner's spouse continuing to run a business on the property and formulating their own plans for retirement and exit from the property. Contracts for sale were exchanged on outside the two year timeframe as stated in section 152-80.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 152-80 | Income Tax Assessment Act 1997 Subsection 152-80(3) Further issues for you to consider | This ruling has not considered your eligibility for the small business concession. You should ensure that you satisfy the basic conditions and the other conditions relevant for the concession. More information can be found at C apital gains tax concessions for small business , which is available on our website www.ato.gov.au .