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  • Extensions to the two-year ownership period

    In certain circumstances you're exempted from capital gains tax (CGT) on an inherited dwelling if you dispose of your ownership interest within two years of the person's death.

    You can apply to us to extend the two-year period. Generally, we would grant the extension if the delay is due to circumstances outside your control, such as:

    • the ownership of a dwelling or a will is challenged
    • the complexity of a deceased estate delays the completion of administration of the estate
    • a trustee or beneficiary is unable to attend to the deceased estate due to unforeseen or serious personal circumstances arising during the two-year period (for example, the taxpayer or a family member has a severe illness or injury)
    • settlement of a contract of sale over the dwelling is unexpectedly delayed or falls through for circumstances outside the beneficiary's or trustee’s control.

    These examples are not exhaustive.

    We'll also take into account the extent to which the dwelling is used to produce assessable income and the length of time you held your ownership interest.

    You can only apply for an extension if the relevant CGT event (such as disposing of the dwelling) happens in the 2008–09 or later income years.

    See also:

    Last modified: 17 Jul 2017QC 52250