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Edited version of private advice
Authorisation Number: 1051809963985
Date of advice: 26 February 2021
Ruling
Subject: Commissioners 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.
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 purchased a property (the property) with their spouse after 1985.
Some years later, the spouse of the deceased passed away and their share of the property passed to the deceased.
The deceased occupied the property as their primary place of residence.
The deceased subsequently moved into an aged care facility.
The deceased passed away and probate was granted approximately X months later.
The executors of the estate were the deceased's two children (A and B) and the deceased's granddaughter (C).
No immediate steps were taken to prepare the property for sale as A was interested in acquiring the property themselves.
A's spouse (and C's mother) died approximately X months after probate was granted and A died another three months later.
The remaining executors, B and C, lived interstate which made it more difficult to deal with matters relating to the property.
Due to their individual circumstances, C rather than B, took on the primary responsibilities of preparing the property for sale.
C also had to deal with the administration of their parent's estates which involved the sale of two properties.
More recently, C was impeded in their efforts to prepare the property for sale firstly due to the major bushfires that impacted the area, and then as a result of the rigorous travel restrictions that were imposed in relation to the COVID-19 pandemic.
Settlement for the sale of the property occurred approximately three years after the date of death of the deceased.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195