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Edited version of your written advice
Authorisation Number: 1051281718351
Date of advice: 13 September 2017
Ruling
Subject: Capital gains tax
Question
Will the Commissioner exercise his discretion to extend the 2 year exemption period under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) in relation to the two hectares of the property you nominated as your main residence?
Answer
Yes.
Having considered your circumstances and the relevant factors, the Commissioner is able to apply his discretion under subsection 118-195(1) of the ITAA 1997 and allow an extension of time. Further information on the relevant factors and inheriting a dwelling generally can be found on our website ato.gov.au and entering Quick Code QC52250 into the search bar at the top right of the page.
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The deceased acquired a property.
The property was not acquired for development or profit making purposes.
A portion of 2 hectares was nominated as the respective taxpayer’s main residence for the purposes of the main residence exemption.
The land was rezoned from being residential by the council which resulted in the land value increasing.
You had agreed to sell the property to a company but they went into liquidation before the sale was completed.
You engaged a number of agents in an attempt to find a buyer.
Due to the new zoning, prospective buyers were required to undertake additional investigations and due diligence not normally required for residential acquisitions that delayed the selling process.
A buyer was found and the property was sold outside of the two year period.
The property was sold with the existing dwelling that you occupied as your main residence.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)
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