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Edited version of private advice
Authorisation Number: 1051586479486
Date of advice: 25 September 2019
Ruling
Subject: Capital gains tax - deceased estate - Commissioner's discretion to extend the two year period - main residence exemption
Question
Will the Commissioner exercise the discretion under 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and allow an extension of time to the two year period?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner will allow a short 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:
1 July 2018 to 30 June 2019
The scheme commences on:
19 October 2016
Relevant facts and circumstances
The deceased owned a property. The dwelling at the property (the dwelling) was their main residence at the time of their passing.
The dwelling is located on land that is less than two hectares.
The deceased died more than two years ago.
Probate was granted a few months after their passing.
The dwelling was subsequently listed for sale within two years of the deceased's death.
The contract to sell the dwelling was entered into with settlement scheduled within two years of the deceased's death.
Settlement was delayed a number of times due to the purchaser having issues obtaining finance.
Solicitors were engaged and the contract was subsequently enforced.
Settled occurred a number of weeks after the end of the two year period after the deceased's death.
The dwelling was not used for income producing purposes from the date of the deceased's death until it was sold.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subdivision 115-A
Income Tax Assessment Act 1997 section 102-20
Income Tax Assessment Act 1997 section 118-195
Income Tax Assessment Act 1997 section 104-10