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Edited version of your written advice
Authorisation Number: 1051490152398
Date of advice: 4 March 2019
Ruling
Subject: Deceased estate and two year discretion
Will the Commissioner allow an extension of time for you to dispose of your ownership interest in the dwelling 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 ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts
The deceased acquired a dwelling (The dwelling)
The deceased passed away in 20XX (The deceased)
The deceased acquired a half share in the dwelling from the estate of their parent prior to 20 September 1985.
The deceased acquired the remaining half share in the dwelling from their children prior to 20 September 1985.
The dwelling was not the deceased’s main residence.
The deceased’s will provided that title to the dwelling was to be transferred to the deceased’s children (you) in equal shares.
The executor of the estate is your parent. Your parent transferred the title to the dwelling to you in June 2016.
The transfer of the title caused considerable family disharmony to the extent that you decided to the sell the dwelling in 2017.
The dwelling required some repairs prior to sale.
The dwelling was placed on the market in 2017 and settlement took place a short time later in 2017.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 subsection 118-130(3)
Income Tax Assessment Act 1997 section 118-195
Income Tax Assessment Act 1997 subsection 118-195(1)