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Edited version of private advice
Authorisation Number: 1051757814120
Date of advice: 21 September 2020
Ruling
Subject: Commissioner's discretion to extend the two year period
Question
Will the Commissioner allow an extension of time to DD/MM/YYYY 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 the Commissioner's discretion can be found by searching 'QC 52247' on ato.gov.au
This ruling applies for the following period
Year ended 30 June 20XX
The scheme commenced on
1 July 20XX
Relevant facts and circumstances
Your parent (the deceased) passed away on DD/MM/YYYY.
The deceased's Will left ownership interest in a dwelling (the property) to you and for the Deceased's spouse with a right to occupy the property.
The property was the deceased's main residence at time of their passing.
The Deceased's spouse occupied the property as their main residence from the Deceased's date of death until they passed on xx xxx xxxx. You were not made aware of their passing until some weeks after the event.
In xxx xxxx you approached a local real estate who advised you that a Developer was interested in purchasing your property as well as surrounding properties as a development site. The Developer was unable to proceed with the purchase.
In xxx xxxx you entered into an agreement with a Real Estate to undertake the joint sale of the property and the neighbouring property. No offers were received.
You made various listings with Real Estates who encouraged you to join with your neighbours and obtain a Development Application for the sales.
You decided to go against the advice of the Real Estate and sell the property as it was. In xxx xxx you engaged a new Real Estate Agent and the property was sold on xx xxx xxxxx at auction.
Due to issues associated with COVID19 and the tightening of the financial market the settlement of the property was initially delayed.
The purchaser eventually secured finance for the full purchase price and settlement occurred
The property was never used for income producing purposes
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)