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Edited version of private advice
Authorisation Number: 1052033633966
Date of advice: 26 September 2022
Ruling
Subject: CGT - Commissioner's discretion
Question
Will the Commissioner exercise the discretion to allow an extension for you to dispose of your ownership interest in the dwelling and disregard the capital gain or capital loss you made 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 ato.gov.au for 'QC 66057'.
This private 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.
The deceased acquired the property prior to 20 September 1985 and it has never been used for income producing purposes during the deceased's ownership.
At the time of his death, the deceased resided in Aged Care and had for the last X years. The property had remained vacant during this time.
The trustee of the deceased estate elected to apply the absence choice and treat the property as the deceased's main residence from the time he moved into aged care.
The property was located on less than 2 hectares of land.
The property has not been used for income producing purposes since the deceased died.
The deceased's Will named Person A as executor and trustee.
Person A authorised probate to be granted to a trustee company, while Person A remained as the non-proving executor.
The property sale was complicated due to the extended COVID lock downs which delayed preparing the property for market. The property could not be placed on market until all contents had been removed. The removal of contents was delayed due to the health requirement to have the property fumigated as it had been unoccupied for X years.
Person A was diagnosed with a serious health condition and was hospitalised for treatment during the time the property was being readied for sale.
The property was listed for sale as soon as was practicable due to circumstances outside of the control of the executor. The property was listed for sale and a public auction was held. The property sold with settlement occurring X months after auction.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)
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