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Edited version of private advice
Authorisation Number: 1051524366220
Date of advice: 1 June 2019
Ruling
Subject: Capital gains tax - two year discretion
Question
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 and circumstances
The property was previously owned by your father, who purchased the property. On his passing the property passed to your mother (The Deceased).
Under the conditions of the deceased's will, all siblings would each get an equal share in the property.
Obtaining original copies of the death certificate took over six months.
The will and original death certificate was required to be produced in a court of law for verification and authentication which took around eight months.
The cooperative housing society sent all required documents to the state board of housing Society for approval. Once approved share certificates were prepared in the name of the five siblings causing a delay of six months.
The property has not been used to produce income.
The property was required to be repaired and cleaned in preparation for sale.
The property was listed on the market and has sold.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)