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Edited version of private advice

Authorisation Number: 1051817288417

Date of advice: 18 March 2021

Ruling

Subject: CGT - Commissioner's discretion to extend 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 is able to apply his discretion for up to two hectares of land with your dwelling under subsection 118-195(1) of the ITAA 1997 and 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 2021.

The scheme commences on

1 July 2020.

Relevant facts

Person A and Person B acquired as joint tenants a dwelling (the dwelling).

The dwelling was the main residence of person A.

Person B's share of the dwelling was acquired by person C in 20XX.

The dwelling was held as tenants in common in equal shares.

Person A passed away in 20XX. (The deceased)

Person A occupied the dwelling as their main residence.

The dwelling is located on land that is less than two hectares.

Organisation A were listed as the executor for the deceased.

Organisation A was contacted on XX X 20XX by a legal representative acting on behalf of person C in relation to a potential claim on the estate for reimbursement of expenses and repairs undertaken on the dwelling.

Organisation A forwarded an email to the legal representative requesting further information in relation to the claim. No response was received in relation to this request.

The legal representative again contacted organisation A on X XX 20XX and advised that person C was having trouble with their email and advised that person C had now obtained a valuation and was prepared to make an offer to acquire the share of the deceased.

Organisation A commenced the formal administration of the estate on XX X 20XX.

Settlement occurred a short time later.

Relevant legislative provisions

Income Tax Assessment Act 1997 subdivision 115-A

Income Tax Assessment Act 1997 section 102-20

Income Tax Assessment Act 1997 section 104-10

Income Tax Assessment Act 1997 section118-120

Income Tax Assessment Act 1997 section118-130

Income Tax Assessment Act 1997 section 118-195

 

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