Private ruling: Deceased estate - small business rollover
Date of advice: 13 October 2022
Published: December 2022
Ruling period: Income Tax Assessment Act 1997 section 152-80(3)
Date scheme commenced: 1 July 202X

Ruling: Q1: Will the Commissioner exercise the discretion under subsection of the 152-80(3) Income Tax Assessment Act 1997 (ITAA 1997) to extend the time limit for the legal personal representative (LPR) to apply the small business capital gains tax concessions to the sale of the deceased's property? | A1: Yes, After taking into consideration the work and repairs that needed to be completed before the property could be sold, the conveyancing issues caused by the shed built across the boundary of the property and the delays caused by the Covid-19 pandemic, the Commissioner will allow an extension of time beyond two years to the DDMM 202X as per subsection 152-80(3) of the ITAA 1997 to apply the CGT small business concessions

Relevant facts and circumstances: Property was acquired DDMM 199A by the deceased from their spouse who has passed away after a disputed will after a deed of agreement. The Property was used as a business asset in a small livestock business. Aggregated turnover of the business was under $X million. The deceased passed away DDMM 201B The Property had been run down requiring repairs. Livestock needed to be sold. Conveyancing issues caused delays with the sale which needed to be sorted before the Property could be sold.

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