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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of private advice

Authorisation Number: 1051617846037

Date of advice: 6 December 2019

Ruling

Subject: The Commissioner's discretion to extend the two year time limit to dispose of a dwelling

Question

Will the Commissioner exercise discretion under subsection 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 the relevant facts, the Commissioner will apply his discretion under subsection 118-195(1) of the ITAA 1997 and allow an extension to the two year time limit until the settlement date.

This ruling applies for the following period:

Year ended 30 June 2019.

The scheme commences on

1 July 2018.

Relevant facts and circumstances

You act as the executor for the estate of the deceased.

The deceased had lived in the dwelling. The dwelling was their main residence and has not been rented.

The dwelling was sold and settled less than a month outside the 2 year limit.

There were complications in obtaining probate that were exacerbated by the lawyer engaged at the time. The lawyer resigned due to his inability to deal with the issues surrounding the estate and a new lawyer had to be engaged causing delays.

Once probate was granted steps were taken to dispose of the dwelling but due to the delay caused by issues with the lawyer and the downturn in the market the dwelling took longer than anticipated to sell.

The dwelling was eventually sold but al lower price than was expected due to market conditions at the time.

Relevant legislative provisions

Income Tax Assessment Act 1997 subsection 118-195(1)