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Edited version of private advice
Authorisation Number: 1051608854245
Date of advice: 21 November 2019
Ruling
Subject: Capital Gains Tax
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 2020
The scheme commences on:
1 July 2019
Relevant facts
The deceased passed away in 20xx.
The children of the deceased were the only beneficiaries in the Will.
It was agreed by the children the spouse of the deceased would continue living in the property.
There were promises made by the spouse they would not contest the Will and that they had their own financial needs met.
Sometime after the deceased passing, the spouse sold or gave away valuable contents of the house including sentimental items from the children's childhood without their knowledge.
The spouse then put a claim in for the estate in 20xx. They won and the Settlement and Agreement was signed in 20xx.
Due to the stress caused by the spouse and the passing of the deceased. One of the children had to consult with a clinical psychologist. They also felt it was difficult to enter the house to clean up the deceased's belongings and cleaning the house to prepare the house for sale. There was also a relationship breakdown between the children.
The children also provided cosmetic care to the property during the 2 years, painting all the walls and deck. Due to other commitments they were only able to work on the property one day a week.
The property was sold and the contract signed on 20xx.
Final settlement and transfer was on 20xx.
This was relevantly a short period of time outside the two years from when the deceased passed away.
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