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Edited version of private advice
Authorisation Number: 1051838273254
Date of advice: 18 May 2021
Ruling
Subject: Commissioner's discretion to extend the two year time limit 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 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 20XX
Year ended 30 June 20XX
The scheme commences on
1 July 20XX
Relevant Facts
The deceased acquired a dwelling (the dwelling).
The dwelling is located on land that is less than XX hectares.
The dwelling was the deceased's main residence when they passed away in 20XX.
The deceased had a number of pet animals which required rehoming. This caused some delays as some of the pets required new enclosures to be erected before they could be relocated. This caused some delays in preparing the dwelling for sale.
The will of the deceased also took some time to locate.
Probate was obtained in 20XX.
COVID-19 has impacted on your ability to prepare the dwelling for sale.
The dwelling has remained vacant since the death of the deceased.
The dwelling was placed on the market and a contract for the sale was exchanged and unconditional a short time later.
Settlement is expected to occur shortly.
Assumption
For the purpose of this ruling, it is assumed that settlement will occur within a couple of weeks of the expected settlement date.
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 section 118-120
Income Tax Assessment Act 1997 section 118-130
Income Tax Assessment Act 1997 section 118-195
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