EV 1052118662387currentnon-binding advice

CGT - small business replacement asset rollover

Non-binding edited private advice. This is an edited version of private advice the ATO gave to a specific taxpayer about their own circumstances. You cannot rely on it — it is not binding and provides no protection for anyone else (see PS LA 2008/4). Use it as a guide to the ATO’s thinking, not as authority.

1

Will the Commissioner exercise the discretion in subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period to acquire a replacement asset?

2

Yes. Having considered your circumstances and the relevant factors, the Commissioner considers it appropriate to grant an extension of the replacement asset period. This ruling applies for the following periods : Year ending 30 June 20XX Year ending 30 June 20XX The scheme commenced on: 1 July 20XX

3

You sold your asset in the financial year ending 30 June 20XX, resulting in a capital gain which was rolled over under Subdivision 152-E of the ITAA 1997. COVID-19 and the demand for similar assets hindered your ability to acquire a replacement asset prior to the replacement asset period ending. Due to the initial issues finding a replacement asset, you had considered either making payment of the retirement exemption to complying superannuation fund under paragraph 152-305(1)(c) of the ITAA 1997 or to fund the income tax payable on a J5 capital gain. You had funds stolen resulting in a large financial loss. You now need additional time to release equity from other properties to fund the replacement asset.

4

Income Tax Assessment Act 1997 subsection 104-190(2) Income Tax Assessment Act 1997 Subdivision 152-E