1 Will the Commissioner, pursuant to subsection 152-80(3) of the Income Taxation Assessment Act 1997 (ITAA 1997), grant an extension of time until 30 June 2023 to sell a primary production property?
Yes. Question 2 Can the trustee apply the small business 15 year exemption under section 152-105 of the ITAA 1997 to disregard the capital gain made on the disposal of the property? Answer Yes. This ruling applies for the following period : year ending 30 June 20XX The scheme commences on: DDMM 20XX
(The deceased) died on DDMM 20XX The deceased conducted a primary production enterprise across multiple properties in XXX and XXX The properties in XXX were purchased before 20 September 1985. The property regarding this ruling located in south west XXX located in the XXX and purchased in 19XX. The deceased's will appointed some of his children as executors, although one of the children died, prior to the passing of their parent (the deceased). The estate has decided to sell one property although it has been drawn out due the following reasons: Delays in obtaining probate valuations due to the Covid-19 pandemic. Executors living interstate with one living in XXX and another in XXX, making travel difficult due to the Covid 19 pandemic travel restrictions. All the properties were in the grip of drought at the time of deceased's death. One of the properties of the estate has recently suffered flood inundation. The deceased's spouse's general health has declined to the point that they can no longer take care of themself and their disabled child and has been placed in nursing home care.
The disabled child continues to live in the family home but with in-care assistance placing burden on the executor that lives locally.
Income Taxation Assessment Act 1997 section 152-10 Income Taxation Assessment Act 1997 section 152-80 Income Taxation Assessment Act 1997 section 152-105 Detailed reasoning Question 1 Section 152-80 of the Income Taxation Assessment Act 1997 (ITAA 1997) allows either the legal personal representative or beneficiary of an estate to apply the capital gains tax (CGT) small business concessions in respect of the sale of the deceased's asset in certain circumstances. Specifically, the following conditions must be met: • The asset transfers to the legal personal representative or passes to a beneficiary; • The deceased would have been entitled to reduce or disregard a capital gain from a CGT event under the small business concessions, immediately before their death; • A C