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Edited version of private advice
Authorisation Number: 1051844311305
Date of advice: 27 May 2021
Ruling
Subject: 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 Month 20XX 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 period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The deceased passed away in 20XX.
The deceased's death certificate was received X months after death due to circumstances relating to the deceased.
Probate was applied for X months after death due to the incapacities suffered by the executor of the estate.
Probate was granted X months after death.
In early 20XX, the executor approached a real estate agent to sell the deceased's house (the house).
The house was the deceased's main residence for the entirety of their ownership.
In late 20XX, a party was purported to be interested in the property (and moving from interstate) so other efforts to sell were put to the side, and ultimately the individual determined the property was too small for their needs.
COVID-19 restrictions were in effect from late Month to early Month 20XX.
The executor injured themselves rendering them immobile for X months (and still waiting for further surgeries to rectify the injuries).
In mid-20XX, a real estate agent inspected the property with a view to sell it, but an appropriate sales strategy couldn't be agreed.
X months later a real estate agent was engaged leading to a sale shortly thereafter with contracts exchanged and settlement in Month 20XX.
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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