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Edited version of private advice
Authorisation Number: 1051705500757
Date of advice: 25 June 2020
Ruling
Subject: Commissioner's discretion to extend the two year period
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' on ato.gov.au
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The deceased passed intestate.
At the time of his/her death the deceased had no living spouse and was survived by an only child.
At the time of the deceased's death, the only child of the deceased had 100% beneficial interest in the deceased estate.
The only child died intestate in 20XX. Letters of Administration for the only child's estate were granted to the Administrators in 20XX.
The deceased had 100% ownership interests in a property (the property). The deceased resided at the property and the property was considered his/her main residence.
In 19XX the deceased moved into a Nursing Home and continued to consider the property as his/her main residence under the absence rule.
The only child resided in the property with the deceased prior to him/her moving into the nursing home. The only child continued to live in the property and used it as his/her main residence until his/her own death in 20XX.
The only child never obtained Letters of Administration for the deceased's estate and never transferred the property into his/her own name.
Letters of Administration for the deceased's estate were granted to the Administrators in 20XX.
Due to the complexity of the estate relating to the inheritance of the property the Administrators were unable to sell the property earlier but within 1 month of being granted the Letters of Administration a contract of sale was entered into with settlement occurring in 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)