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Edited version of private advice
Authorisation Number: 1051780520528
Date of advice: 20 November 2020
Ruling
Subject: 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 20XX
Year ended 30 June 20XX
The scheme commences on
1 July 20XX
Relevant facts
The deceased and person A (A) acquired a dwelling as tenants in common. (The dwelling).
The deceased passed away in 20xx. (The deceased)
The dwelling had been the deceased's main residence prior to passing away.
Person A was at that time residing in a nursing home. This continued until their passing.
Person A died intestate.
A dispute arose between the potential beneficiaries as to the distribution of the estate.
Documents were required to be obtained from overseas and needed to be translated which caused some delays.
The dwelling could not be sold during the lifetime of person A without their consent. This affected the ability to dispose of the dwelling and caused delays.
An Administrator was appointed for the Estate of person A around 20XX.
The process of sale of the dwelling commenced with a real estate agent being appointed in 20xx.
A contract for the sale was accepted a short time later.
Settlement occurred after a period of time.
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)