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Edited version of private advice
Authorisation Number: 1051627756328
Date of advice: 17 January 2020
Ruling
Subject: Income tax - capital gains tax - extension of time to dispose of property
Question
Will the Commissioner allow an extension of time to XX January 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 June 2020
The scheme commences on:
1 July 2016
Relevant facts and circumstances
The deceased owned a property which they used as their main residence until their death.
Title was transferred to the Individual A and Individual B (the beneficiaries) on xx/xx/xxxx.
Once title was transferred to the beneficiaries the following further delayed the sale.
· During the welfare check on the deceased the police had to force access to the property - this damage had to be repaired.
· Both beneficiaries are located in XYZ, 400kms from the Property.
· The property had to be emptied of a large volume of personal belongings accumulated over a lifetime.
· State Trustees had denied beneficiaries access to the property so the perishable food had been left in the property for a period of approximately X months.
· Cleaning of the property took a considerable amount of time following the death due to the length time it had been denied access.
· There were a number of things that couldn't be cleaned as above and had to be replaced in a bid to remove the odour.
· There were a number of building code compliance issues with the following that had to be rectified before the property could be sold:
- Gas line
- Kitchen
- Shower screen
A contract of sale was entered into on xx/xx/xxxx and settlement occurred on xx/xx/xxxx.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195