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Edited version of private advice
Authorisation Number: 1051619259278
Date of advice: 11 December 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 2018.
The scheme commences on
1 July 2017.
Relevant facts
The deceased acquired a dwelling prior to 20 September 1985 ('the dwelling').
The deceased also owned another property, which was occupied as the main residence ('the main residence').
The deceased passed away in 20XX.
The dwelling did not have any capital improvements undertaken after acquisition.
The deceased left an equal interest in their estate to her children. One of the deceased's children ('A') occupied the deceased's main residence prior to the deceased passing away and continued to do so afterwards.
'A' expressed an interest in acquiring the interest of the siblings in the main residence and a proposed family agreement was considered.
An alternative arrangement was then considered, which was for 'A' to purchase the dwelling.
During this time, 'A' had significant health issues which delayed their decision re purchase of property issue.
'A' was unable to make a decision and refused to agree to any proposed resolution.
Legal representation was engaged in an attempt to resolve the dispute.
It was the decision of the executor to commence with the sale of the dwelling.
A real estate agent was appointed, and a contract for the sale of the dwelling was entered into on within a month
Settlement occurred approximately one month later
The settlement date was less than two years and two months after the deceased's passing.
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
Income Tax Assessment Act 1997 subsection 118-195(1)