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Edited version of private advice
Authorisation Number: 1051611784954
Date of advice: 21 November 2019
Ruling
Subject: Commissioner's discretion to extend the two year period
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 2019
The scheme commences on:
1 July 2018
Relevant facts and circumstances
The deceased passed away on X September 20XX.
The deceased left their ownership in a property in their estate
The deceased had purchased the property pre 1985. The property was the deceased's main residence at time of death.
The will appointed an Executor of the estate and named the two beneficiaries. Each beneficiary was to receive 50% of the estate.
Probate was granted X August 20XX.
On X September 20XX one of the beneficiaries challenged the will by making a Family Provision Claim.
Resolution of this dispute occurred.
Liaison occurred with the tenant in common (deceased's estranged spouse) regarding vacating or selling the property.
X November 20XX s66G Conveyancing Act (NSW) application made to Relevant Court NSW requesting vacant possession to sell.
The legal disputes which delayed the sale of the property included the Family Provisions challenge to the will and then the s66G relating to the sale of the property held in co-ownership.
The property was placed under contract on XX March 20XX and settlement occurred on XX June 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)