Private ruling: CGT - deceased estates - small business concessions - extension of time two year
Date of advice: 29 May 2021
Published: August 2021
Ruling period: Year ending 30 June 2020
Date scheme commenced: 1 July 2019

Ruling: Q1: Will the Commissioner, pursuant to subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997), allow an extension of time to 30 June 20XX to allow the small business capital gains tax (CGT) concessions to be applied? | A1: Yes. Having considered your circumstances and the relevant factors, such as the life interest, the Commissioner will allow an extension of time. Further information on death and the small business CGT concessions can be found on our website, ato.gov.au by searching Quick Code QC52292.

Relevant facts and circumstances: The Deceased and their spouse B (B) operated a business utilising two separate properties. Property 1 was acquired by the deceased and B on or around XX April 20XX. Property 2, which consisted of X titles was acquired by the deceased and B through a period commencing around XX July 20XX to XX February 20XX. The deceased and B held a 50% interest in each property. The deceased died on XX June 20XX. Probate was granted XX April 20XX and executors appointed. In the deceased's will, the deceased's 50% interest in the properties were left to their children, subject to B holding a life interest therein. B's life interest was to expire on either B's death or upon B ceasing to farm the properties. The Executors and B together sold Property 1 to a third party with contract date XX June 20XX. The deceased's interest in Property 2 was sold to B with contract date of XX June 20XX. The sale of the properties occurred in conjunction with B ceasing to farm the properties in June 20XX The deceased would have been eligible to apply the CGT small business concessions prior to their death.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 152-80