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Edited version of private advice
Authorisation Number: 1051621275888
Date of advice: 16 December 2019
Ruling
Subject: Commissioner's discretion to extend the two year time limit to dispose of a dwelling
Question
Will the Commissioner allow an extension of time to 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 ended 30 June 20XX
The scheme commences on:
01 July 20XX
Relevant facts and circumstances
A person passed away.
An individual had a main residence; the property has been vacant since the date of death.
The property was jointly owned prior to 20 September 1985.
Sole ownership of the property was acquired post 20 September 1985.
A copy of the Will could not be located a search was conducted; notification was received stating that the original Will was found.
The Will identified a equal division between the two beneficiaries. The Estate consisted of the primary place of residence and an Investment Company. Differences between the beneficiaries on the distribution of the estate commenced post the discovery of the Will.
The beneficiaries were in negotiations with the solicitor that held the lost Will, a confidentially agreement was entered into with all parties.
A meeting with the company account and all beneficiaries was held. It was identified that there were outstanding lodgments for the company which needed to be addressed prior to the company being liquidated
The beneficiaries were awaiting several accountants to facilitate the completion of the relevant company tax returns.
It was deemed a Deed of Family Arrangement was required to address the needs of the beneficiaries in relation to the estate negotiations. Meetings including legal representatives occurred over a twelve month period after five drafts a final document was signed. The Deed of Family Arrangement ended.
It was identified that the property would be listed for sale.
Specialist tax advice was received from the liquidators in relation to the estate.
The property was transferred into the name of a beneficiary actioned by the Land Broker.
Council approval of the removal of trees on the property was granted.
The Company associated with the estate was de-registered.
The property was sold.
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)