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Edited version of private advice
Authorisation Number: 1051698178825
Date of advice: 11 June 2020
Ruling
Subject: Capital gains tax
Question
Will the Commissioner exercise his discretion under section 118-195 of the Income Tax Assessment Act 1997 to allow an extension of time to the two year main residence exemption on a dwelling to XXXX 20XX?
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 30 June 2020
The scheme commences on:
1 July 2019
Relevant facts and circumstances
The deceased died in the 20XX income year.
The property was the deceased's main residence until their death.
The administration of the estate took longer than the 2 year period allowed in the legislation due to the nature of the way the deceased died and the involvement of a family member in the death.
This period of time up until the property was sold was very stressful and caused a lot of upheaval in the family's lives.
You in particular suffered immense mental and emotional stress after your sibling's death.
You were not able to contemplate the tax and financial implications in relation to the house during this period.
You also had delays in personal matters such as your wedding during this period.
The property was sold early 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195