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Edited version of private advice
Authorisation Number: 1051628304915
Date of advice: 22 January 2020
Ruling
Subject: Capital Gains Tax on an inherited dwelling
Question
Will the Commissioner allow an extension of time to XX/XX/20XX for you to dispose of your ownership interest in the dwelling and disregard the capital gain you make on the disposal?
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 June 2019
The scheme commences on:
1 July 2018
Relevant facts and circumstances
You inherited the deceased's main residence. The property was never rented out and it did not produce any assessable income..
Probate was originally granted xx/xx/xxxx.
The Will was contested by siblings and final probate was granted xx/xx/xxxx.
In order to restore the property to a saleable condition, it required extensive repairs and maintenance as the deceased was a hoarder and suffered dementia.
The property was listed for sale on xx/xx/xxxx at a price set by the real estate agent.
There was an easement over the property which made the property more difficult to sell.
The price was decreased to attract buyers.
A contract of sale was entered into on xx/xx/xxxx and settlement occurred on xx/xx/xxxx.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195
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