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Edited version of private advice
Authorisation Number: 1051795674935
Date of advice: 15 January 2021
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 2021.
The scheme commences on
1 July 2020.
Relevant facts
Person A and person B acquired as joint tenants a dwelling. (The dwelling).
Person A and person B changed the ownership of the dwelling from joint tenants to tenants in common in 20xx.
Person A passed away a short time later.
Person B was appointed as executor under the will of person A.
Person B was granted a life interest under the will of person A.
A caveat was lodged on the title to the dwelling by the beneficiaries of person A estate who reside overseas.
Person B passed away in 20xx (The deceased).
The dwelling had been the deceased's main residence prior to passing away.
On xx xx 20xx person C was appointed executor of person B Estate however this was subsequently revoked as there was a latter will identified. This process caused some delays in administering the estate.
Some delays were experienced in communicating with beneficiaries residing overseas and in removing the caveat lodged on the title to the dwelling.
After a period of time, person C, was appointed Executor of person B's Estate
In 2oxx a contract for sale of property was signed into by the executor.
Settlement of sale of property was completed 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)