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Edited version of private advice
Authorisation Number: 1051619033212
Date of advice: 11 December 2019
Ruling
Subject: Capital gains tax
Question
Will the Commissioner allow an extension of time to late 20XX 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 ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You inherited the property from the deceased.
The deceased passed away early 20XX.
The property was the deceased's main residence at their death and had been for a number of years
The property was not being used to produce income just before the deceased died.
The deceased's children challenged the Will and court proceedings commenced early 20XX and were subsequently resolved via mediation.
Further court proceedings were initiated late 20XX to address tax liabilities that had not been provided for by the executor.
Due to the court proceedings the property did not pass to you until early 20XX.
In mid 20XX you contacted real estate agents who advised that the property was not in a saleable condition.
The property was in a state of disrepair with broken windows and missing floor boards.
You completed the repairs yourself as you were not in a financial position that would allow you to pay for the repairs to be completed by others.
It took several months to complete repairs and then the property was put on the market in late 20XX.
The property was sold late 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195(1)