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Edited version of private advice
Authorisation Number: 1052022015541
Date of advice: 16 August 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 the dwelling to XXXX?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner will extend the 2-year period to dispose of the dwelling to XXXX. 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 20YY
The scheme commences on:
1 July 20YY
Relevant facts and circumstances
The deceased passed away on in the 20YY income year.
The property was their main residence for the whole of their ownership period.
The property was not used to produce income.
The property was less than X hectares in size.
Probate was granted on DD MM YYYY.
The property remained vacant from the deceased's death until it was sold.
The property was placed on the market in DD MM YYYY and a contract to purchase was signed on DD MM YYYY.
Settlement of the sale of the property occurred on DD MM YYYY
The reasons for the delay in the sale are as follows:
The pandemic meant that it was impossible to get a real estate agent to view the house for sale due to the lock downs.
Property inspections and auctions were very limited.
The lock downs went on for at least 12 months.
In addition to this during the 2-year period one of the executors had been diagnosed with a terminal illness and attended many appointments over the period in relation to this illness.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 118-195
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