Private ruling: Capital gains tax - small business concessions
Date of advice: 25 March 2020
Published: May 2020
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

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 allow the small business capital gains tax (CGT) concessions to be applied in relation to the post-CGT interests held in the property? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner is able to apply the discretion under section 152-80 of the ITAA 1997 and allow an extension of time until the property was sold. 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 acquired a property (the property) which consisted of pre and post CGT interests. The property was used for primary production purposes in a partnership (the partnership), and has been used for this purpose since the date of purchase until it was sold. The aggregated turnover for the partnership was less than $XXX. The property forms part of the deceased's estate. The deceased passed away on XX XXX XXXX. The other partner (the partner) of the partnership disputed the partnership assets and refused to allow anything to be sold until the dispute was resolved. Due to the threats of litigations the executor was unable to sell or otherwise deal with the property. In XXXX the partner filed a claim against the estate. The matter was resolved by the parties reaching a settlement. The property was placed on the market with a contract signed on XX XXX XXXX and the property was sold.

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