Edited version of private advice

Authorisation Number: 1051782198986

Date of advice: 19 November 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 ending 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

The deceased passed away. The deceased owned property. The property was the deceased's main residence at time of death.

The property was less than two hectares. The dwelling was not used for income producing purposes at the time of death and remained vacant since the date of the deceased's death.

On xx xxx xxxx the taxpayer entered into a contract for the sale of the dwelling. The sale was made with other unit owners as part of a proposed development to be undertaken by the purchaser.

Delays and difficulties with the Development Application approval lodged by the purchaser led to the purchaser writing to the estate requesting a further extended settlement date of x xxx xxxx.

The development application was subsequently approved and the sale of the dwelling settled on xx xxx xxxx.

The contract for sale of the property was entered into without any delay and original settlement was due to occur well within the two year period following date of death. The settlement of the contract was delayed by factors outside of your control.

Relevant legislative provisions

Income Tax Assessment Act 1997 subsection 118-195(1)