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Edited version of private advice
Authorisation Number: 1051589463251
Date of advice: 11 October 2019
Ruling
Subject: Capital gains tax
Question
Will the Commissioner exercise the discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and allow an extension of time until settlement date?
Answer
Yes
Having considered your circumstances and the relevant factors, the Commissioner is able to apply his discretion under subsection 118-195(1) of the ITAA 1997 and allow an extension of time until settlement date. You can find further information on extension to the two-year ownership period by searching QC 52250 at ato.gov.au.
This ruling applies for the following period:
Year ended 30 June 2019
The scheme commences on:
1 July 2018
Relevant facts and circumstances
The deceased passed away in 20XX and had a property which was their main residence.
The deceased's relative also resided at the property at the time of the deceased's death.
The deceased left a will however there was no provision within the will which gave the relative the right to occupy the residence. A trust was created for the relative's benefit that had an indefeasible interest, contingent upon certain conditions. These conditions took time to resolve which delayed the sale of the property.
In addition to this, legal proceedings commenced and this was not settled until a number of years later. Once the dispute was settled and conditions of the will were met, the property was placed on the market and a contract was entered into. Settlement of the property has occurred.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-10,
Income Tax Assessment Act 1997 section 118-195, and
Income Tax Assessment Act 1997 subsection 118-195(1).