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Edited version of private advice
Authorisation Number: 1051796189746
Date of advice: 13 January 2021
Ruling
Subject: Commissioner's discretion to extend the two year period for the capital gains tax exemption in relation to a deceased's dwelling
Question
Will the Commissioner allow an extension of time under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) for you to dispose of your ownership interest in the dwelling?
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 2020
The scheme commences on:
1 July 2019
Relevant facts and circumstances
The deceased passed away on xx xxx xxx.
The deceased owned a property which they had acquired on xx xxx xx. The deceased had occupied the dwelling as their main residence since acquiring the property.
The dwelling was sold by the estate more than two years after the death of the deceased.
There were a few factors that contributed to the delay but the cause of most of the delay was the legal challenges to the validity of the will.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)