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Edited version of private advice
Authorisation Number: 1051817234259
Date of advice: 17 March 2021
Ruling
Subject: Deceased estate - extension to the two-year period
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 periods:
Year ended 30 June 2019
Year ended 30 June 2020
Year ending 30 June 2021
The scheme commences on:
1 July 2018
Relevant facts and circumstances
The deceased died during the year ended 30 June 2019.
The property was the deceased's main residence from purchase until the deceased moved to a care facility.
The property was listed for sale after the deceased moved to the care facility prior to their death.
A contract for sale was entered into prior to the deceased's death.
The contract was terminated by the buyer on 11 months after the deceased's death due to their development not being approved.
A new contract was entered into with a new buyer two weeks after the previous contract was terminated.
The original development approval due date was six months after the new contract was entered.
The buyer requested five extensions to the settlement date before finally settling two years and three months after the deceased died.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1).
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