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Edited version of private advice
Authorisation Number: 1052085772665
Date of advice: 6 June 2023
Ruling
Subject: CGT - exemption
Question
Will the Commissioner exercise the discretion under section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997) to allow an extension of time to dispose of the ownership interest in the Property and disregard the capital gain 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 the Commissioner's discretion can be found by searching ato.gov.au for 'QC 66057'.
This ruling applies for the following period:
Year ended XX/XX/20XX
The scheme commenced on:
XX/XX/20XX
Relevant facts and circumstances
The Deceased passed away on XX/XX/20XX.
As at the date of death, the Deceased owned the Property and lived in it as their main residence. The Property had been purchased by the Deceased prior to 20 September 1985 and was less than 2 hectares.
The Executor commenced the process of decluttered and cleaning the Property. The Deceased held a significant number of personal possessions in the Property which needed to be sorted and disposed.
On XX/XX/20XX, probate was granted to the Executor.
In XX/20XX, the Property was damaged. The Property was in an unsaleable state. Due to COVID restrictions, the Executor encountered difficulties in arranging insurance assessors and tradespersons to attend to the damage.
In XX/20XX, XX was diagnosed with XX and the Executor assumed primary responsibility for their care.
In XX/20XX, the Executor separated from their spouse and moved into the Property. In, on and around this period, the Executor had increased family responsibilities.
In XX/20XX, the Executor listed the Property for sale.
Between XX/20XX and XX/20XX, the Executor was engaged in negotiations with a potential buyer. The negotiations were complex.
In XX/20XX, the Executor engaged a different real estate agent and instructed the agent that they were willing to accept any reasonable offer.
In XX/20XX the Property was sold at auction with settlement occurring on XX/XX/20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195
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