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Edited version of private advice
Authorisation Number: 1051841210290
Date of advice: 27 May 2021
Ruling
Subject: The Commissioner's discretion to extend the two-year time limit to dispose of a house
Question
Will the Commissioner allow an extension of time to XX XX XXXX for you to dispose of your ownership interest in the house 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 ending 30 June 20XX
Year ending 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
Some X years ago, the deceased acquired the house (the house). The house is located on land that is less than two hectares.
The house was the deceased's main residence when they passed away about X years ago.
The house has never been used to produce income since the deceased passed away.
The deceased's will provided that your sibling, could live in the house for X months after the deceased passed away. A solicitor was engaged to start proceedings regarding the deceased's estate.
Your sibling has health issues who refused to move out of the house after the X-month period of legal occupancy expired.
Your sibling had lived in the house for over X years.
Then, another sibling, suffered a xxxxx and was diagnosed with xxxxx. You cared for this sibling including transporting them to and from medical appointments while you worked full-time at your own business.
This sibling had a fall and was admitted to hospital. They passed away shortly after.
During the Moratorium Period, the COVID-19 tenancy protections restricted the ability of the landlord to evict impacted tenants.
Your sibling moved out of the house after you engaged a solicitor to assist with evicting them. The house was cleaned, painted and some minor repairs carried out in order to make it presentable for sale.
The house was listed for sale and sold at auction (just more than 2 years after the deceased passed away).
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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