Edited version of private advice

Authorisation Number: 1051689898123

Date of advice: 28 May 2020

Ruling

Subject: Commissioners discretion to extend two-year exemption period

Question

Will the Commissioner exercise his discretion under section 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and allow an extension of time to the two- year period?

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

Year ended 30 June 2019

Year ending 30 June 2020

The scheme commences on:

1 July 2017

Relevant facts and circumstances

Deceased passes away mid 20XX.

Probate for the estate is granted early 20XX.

Executors A and B are appointed through deceased's will.

The property was the deceased's main residence for the whole of their ownership period.

The total size of the property is under 2ha.

Title for the property was transferred into executor's A and B's names late 20XX.

Application to the Supreme Court was made mid 20XX by Executor A to remove Executor B.

During the period between the deceased passing and the application to the Supreme Court, Executor B had personal items stored at the property which needed to be removed in order to get the property ready for sale.

Executor B has indicated during this time they were suffering from medical conditions which led to the delay in removing the rubbish and personal items from the property.

Out of court agreement reached by Executor A and B.

Property placed on the market and subsequently sold shortly after agreement reached.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195(1)