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Edited version of private advice
Authorisation Number: 1051683127650
Date of advice: 19 May 2020
Ruling
Subject: capital gains tax - deceased estate - two year discretion
Question
Will the Commissioner allow an extension of time 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 30 June 2019.
The scheme commences on
1 July 2018.
Relevant facts
You acquired an interest from your relative around 20xx in a dwelling. (The dwelling)
You acquired the dwelling subject to a life interest for your relative. ('A')
Your relative passed away in 20xx.
The dwelling had been 'A's main residence prior to passing away.
You undertook some renovations to the dwelling as you were unsure whether you were going to keep the dwelling as a long term investment. You were also considering using the dwelling when you visited family members and also as a place where family could stay.
The dwelling was used to produce income for a period of time.
You decided that it was not practical to maintain a dwelling overseas and placed the dwelling on the market for sale.
Settlement took place in 20xx.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 subsection 118-130(3)
Income Tax Assessment Act 1997 section 118-195
Income Tax Assessment Act 1997 subsection 118-195(1)
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