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Edited version of private advice
Authorisation Number: 1051810719893
Date of advice: 15 March 2021
Subject: Capital gains tax
Question
Will the Commissioner exercise his discretion to extend the two years period under section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997) for a property?
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 period:
Year ended 30 June 2020
The scheme commences on:
1 July 2019
Relevant facts and circumstances
The deceased died on early 20XX.
The property was purchased by the deceased in 20XY with their then partner.
The property was the deceased's main residence just before they died.
The property was less than 2 hectares.
Probate was granted on mid 20XX.
The delay in selling the property within the two years time period was due to the ex-partner of the deceased and another relative wanting to purchase the property.
A relative said they wanted to purchase the property and they needed to obtain finance.
This all took time.
Then the ex-partner of the deceased said they would purchase it and they were very slow in replying to messages and phone calls.
Eventually the ex-partner purchased the share in the property.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195
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