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Edited version of private advice
Authorisation Number: 1051697671292
Date of advice: 15 June 2020
Ruling
Subject: the Commissioner's discretion to extend the two-year time limit to dispose of a dwelling
Question
Will the Commissioner exercise discretion under subsection 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 the relevant facts, the Commissioner will apply his discretion under subsection 118-195(1) of the ITAA 1997 and allow an extension to the two-year time limit until the settlement date.
This ruling applies for the following period:
Ruling end date XX XXXX 2019.
The scheme commences on
XX XXXX 2018.
Relevant facts and circumstances
The deceased died.
Probate was granted.
The will included the dwelling. This was the deceased's main residence and was not used for an income producing purpose.
The will granted the deceased's relative a life interest in the dwelling. The relative lived there with the deceased's children.
The relative lived there until their own death. After this, the deceased's children continued to live in the dwelling to care for one of the other children.
The property was put on the market.
There were difficulties selling the property.
The dwelling was sold. Settlement occurred.
The delay was the result of the life interest, a child's health issues and a difficulty selling the property.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)