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Edited version of private advice
Authorisation Number: 1051823743721
Date of advice: 1 April 2021
Ruling
Subject: Commissioner's discretion to allow more time to dispose of a dwelling
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 or loss you made on the disposal?
Answer
Yes. Having considered your circumstances and the relevant factors the Commissioner will allow an extension of time. Further information about the Commissioner's discretion can be found by searching 'QC 52250' on ato.gov.au
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The deceased passed away. The deceased left a will. Probate was granted to the executor.
The deceased purchased a property post capital gains tax (CGT). The property is over X hectares.
The deceased sold a 50% share of the property as tenants in common.
The deceased lived in the property as their main residence up to date of death.
The tenant in common utilised the property in a business.
There were delays in disposing of the property due to complexities with the tenant in common.
The tenant in common had two different law firms acting on their behalf.
There was a dispute between the estate and tenant in common over certain fixtures and chattels on the property, an agreement needed to be reached as to which of those fixtures/chattels remain on the property as part of the sale.
A real estate agent was engaged.
Negotiations occurred with the tenant in common to sell both interests in the property together. Over time the sale price was reduced.
No capital works were completed on the property after the deceased passing.
The property sold with settlement occurring.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)
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