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This edited version has been archived due to the length of time since original publication.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: 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)