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Edited version of private advice
Authorisation Number: 1052006113402
Date of advice: 13 July 2022
Ruling
Subject: CGT - extensions to the 2-year ownership period
Question
Will the Commissioner exercise his discretion under section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the two-year period to dispose of 50% of the dwelling XXXXXX to XX XXXX 20XX?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner will extend the two-year period to dispose of the XX% ownership interest in the dwelling to XX XXXX 20XX1. Further information about this discretion can be found by searching 'QC 66057' 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 on XX December XXXX.
The deceased acquired the property as joint tenants with their spouse on XX February XXXX.
The property was less than 2 hectares.
The deceased acquired their spouses share of the property upon their death on XX January XXXX.
The property was the deceased's main residence for the whole of their ownership period.
The will gave the deceased's child the right to live in the property.
The will further stated that once that right to reside ended the property should be divided between X beneficiaries.
The order to administer the estate was granted on XX March XXXX.
The life interest died on XX July XXXX and their 1/4 entitlement to the property was then owned by their estate.
Probate for the life interests estate was granted on XX October XXXX.
The life interests share of the property was inherited by one of the beneficiaries bringing their entitlement to 1/2.
The other two remaining beneficiaries each decided to sell their share to the beneficiaries' partner.
Sales contract for half of the property was signed on XX January XXXX and settlement occurred on XX February XXXX.
The remaining half was transferred to the beneficiary.
The property was not sold within 2 years of Date of Death due to the deceased's child being given an ongoing Right to Reside in the property.
The property was not used to produce income.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 118-195
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