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Edited version of private advice
Authorisation Number: 1051753701993
Date of advice: 29 September 2020
Ruling
Subject: The Commissioner's discretion to extend the two year time limit to dispose of a dwelling
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 2020.
Year ended 30 June 2021.
The scheme commences on
1 July 2016.
Relevant facts
The deceased acquired a dwelling outside of Australia (the dwelling).
The deceased passed away in 20xx. (The deceased)
The dwelling had been the deceased's main residence prior to passing away.
The dwelling passed to you and your sibling ('A') under an order of the relevant Court as sibling A had sought a larger share of the property.
The Court proceedings caused some delays in administering the estate and in selling the dwelling.
You agreed with sibling A that the dwelling should be sold, however the process of sale caused some delays as you both reside in Australia and required the services of third parties to facilitate the sale.
Title to the dwelling was transferred to you and sibling A jointly.
The effects of COVID 19 also caused some delays in selling the dwelling.
You also experienced difficulties in ascertaining the value of the dwelling due to the impacts of COVID 19.
You received a deposit in relation to the sale of the dwelling in 20XX.
Settlement was delayed due to the impact of COVID 19 as you were unable to travel to complete the necessary documents.
Settlement took place in 20xx.
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)