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Edited version of private advice
Authorisation Number: 1051522718548
Date of advice: 26 June 2019
Ruling
Subject: Commissioner's discretion to extend the two year time limit to dispose of an inherited dwelling.
Question
Will the Commissioner exercise his discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and allow an extension of time to the two year period?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner will allow an extension of time. Further information about this discretion can be found by searching 'QC 52250' on ato.gov.au
This ruling applies for the following period
Year ended 30 June 20XX.
The scheme commences on
1 July 20XX.
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
You purchased the property prior to 20 September 1985 (the Dwelling).
Sometime after the purchase of the Dwelling you passed away (the Deceased)
The Dwelling was the Deceased's main residence at their time of death.
The Dwelling was not used for income producing activities and no income has been received from the Dwelling after the passing of the Deceased.
The Deceased's Will appointed the Public Trustee as the executor and trustee (the Trustee).
The Deceased had two children (child one and child two).
The Deceased's Will directed the Trustee to sell the Dwelling and distribute the proceeds in equal shares to the Deceased's children.
Due to suffering from poor mental health, child two was allowed to live in the Dwelling after the passing of the Deceased.
Sometime after the Deceased passed away Child two moved out of the Dwelling into a nursing home.
A short time later probate was granted.
A few months after probate was granted the property was sold.
Shortly after the property was sold settlement occurred on the property
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 102-20
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 section 118-130
Income Tax Assessment Act 1997 Section 118-195
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