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Edited version of private advice
Authorisation Number: 1051654249872
Date of advice: 08 April 2020
Ruling
Subject: Capital gains tax and Commissioner's discretion
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'
This ruling applies for the following period(s)
Year ended 30 June 20XX.
The scheme commences on
1 July 20XX.
Relevant facts and circumstances
The deceased acquired a dwelling in 19XX.
The deceased passed away on 20XX.
The dwelling was the deceased's main residence.
The property is less than 2 hectares.
The dwelling was never used to produce assessable income.
A real estate agent was engaged in 20XX and the property was placed on the market on XX X 20XX.
The property went to auction shortly after but was unsuccessful. A short time later an offer was accepted and the contracts issued but the purchase did not proceed.
Contracts were exchanged with the purchaser on XX X 20XX and settlement occurred on X X 20XX.
The delay was caused by the siblings living interstate and the amount of possessions that the deceased had that needed to be sorted through.
A capital gain may result from the sale of the property.
Settlement occurred only a short period of time outside the two year period from when the deceased passed away.
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)