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Edited version of private advice
Authorisation Number: 1051781498783
Date of advice: 17 November 2020
Ruling
Subject: Capital gains tax
Question
Will the Commissioner exercise his discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and allow an extension of time to xxxx for you to dispose of your ownership interest in the dwelling and disregard the capital gain made on the disposal?
Answer
Yes. Having considered the relevant circumstances, the Commissioner will exercise his discretion and extend the two year time limit to xxxx.
This ruling applies for the following period
Year ended 30 June 20XX
The scheme commenced on
1 July 20XX
Relevant facts
The deceased passed away on xxxx.
The deceased's spouse passed away on xxxx.
The deceased had lived at the property as their main residence since the purchase date.
The property was never kept for investment purposes. No improvements were made to the property from 20 September 1985 to the date of death on xxxx.
The executor and trustee of the estate is the deceased's relation.
Probate was granted in xxxx.
The will was challenged by two beneficiaries of the deceased estate.
All beneficiaries struggled emotionally and were all very stressed losing their relation.
The executor was in conflict with the beneficiaries.
The executor tried to mediate and wanted all parties to be in agreeance. The executor attempted with his best ability numerously to resolve the matter with the beneficiaries without success.
Due to the lengthy conflict, some of the beneficiaries suffered from medical conditions.
One beneficiary occupied the property on occasions whilst attending medical appointments. The property was empty at other times.
Due to the various health issues, all parties wanted the matter resolved.
The executor appointed a real estate agent to value the property. All beneficiaries agreed to sell the property on the open market.
The executor listed the property with a real estate agent for sale by auction immediately after all parties were in agreeance. The real estate agent was appointed on xxxx, with the proposed auction date on xxxx.
The contract was signed on xxxx with settlement on xxxx.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 118-195