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Edited version of private advice
Authorisation Number: 1051833255636
Date of advice: 30 April 2021
Ruling
Subject: Commissioner's discretion - extension of time
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 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 2250' on ato.gov.au
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
13 November 20XX
Relevant facts and circumstances
The Deceased owned a dwellingin State A (the Dwelling).
The Deceased purchased it after 20 September 1985 and lived in it as their main residence.
The Deceased passed away.
The Deceased died without a Will.
You, being the only child of the Deceased, were to inherit their Estate which included the Dwelling.
You began to prepare the dwelling for sale.
The Deceased's ex-partner claimed that they were entitled to a share of the Estate.
You sought legal advice and were told not to sell the Dwelling until the matter was resolved.
You were granted Letters of Administration by the Supreme Court a few months after the Deceased's death.
You and your partner relocated to State B.
You received official legal documentation advising of legal proceedings being brought against You. The Deceased's ex-partner was claiming entitlement to the entire Estate.
You were notified of a mediation date set for a couple of month's time.
The matter was resolved through mediation. You were required to pay a lump sum to the Deceased's ex-partner.
You planned to return to State A in early 20XX to begin the process of selling the Dwelling.
In January 20XX Australia recorded its first COVID case. From then for quite some time COVID impacted your ability to travel between from your home in State B to State A due to border closures, lockdowns and travel and quarantine restrictions.
You engaged a real estate agent and organised to fly down to meet with them.
A few weeks later You met with the agent. Within a couple of weeks the Dwelling had been photographed and was listed for sale.
After three weeks You accepted an offer, with the contract of Sale being signed shortly after.
Settlement occurred two years and five months after the Deceased's death.
Since the Deceased's death the Dwelling has been unoccupied and has not been used to produce assessable income.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195
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