Edited version of private advice

Authorisation Number: 1051788661748

Date of advice: 11 December 2020

Ruling

Subject: Commissioner's discretion to extend the two-year time limit to dispose of a property

Question

Will the Commissioner allow an extension of time for you to dispose of your ownership interest in the property 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.

The scheme commences on

1 July 20XX.

Relevant facts

The deceased acquired a property. (The property).

The deceased passed away in 20XX. (The deceased).

The property had been the deceased's main residence prior to passing away.

The property was occupied by a child of the deceased ('A') who provided care to the deceased prior to their passing.

Child A continued to occupy the property subsequent to the passing of the deceased.

Child A suffered from a number of medical conditions which required periods of hospitalisation.

Child A also experienced a workplace injury which will likely prevent them from gaining employment in the future.

The Trustee of the estate allowed child A to continue to reside in the property whilst they recovered sufficiently from the hospitals and alternative rental accommodation was able to be obtained.

The property was listed for sale in March 20XX.

Settlement occurred a short time later.

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)