Edited version of private advice

Authorisation Number: 1051824137652

Date of advice: 26 July 2021

Ruling

Subject: Capital gains tax

Question

Will the Commissioner allow an extension of time to the date of settlement 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 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

The deceased passed away several years ago.

The property was the deceased's main residence.

Probate was granted to you in the following year.

The property transferred to you later in the same year as probate was granted.

You were instructed not to access the property until the priority beneficiary had attended the property and removed the items the beneficiary wished to retain.

You were given access approximately two years after the date of death.

During a period prior to the date of death, the deceased spent the majority of the time living in City Z with various friends and occasionally returning to the property.

The deceased did not own any of the properties and none were ever their main residence.

Due to the extended period in which the deceased was not living in the property there dwelling had deteriorated and required maintenance and repairs.

You commenced a clean-up of the property shortly after gaining access to the property.

The various repairs and maintenance occurred over several months.

The clean-up included:

•        Initial clean-up

•        Make incomplete building works and building materials safe for public safety.

•        Removal of junk and building materials

•        Removal of hoarded materials

•        Install front door and lock

•        Removal of temporary cladding

•        Clearing of grounds

•        Pruning to allow vehicle access

•        Removal of tree stumps

•        Water supply issue rectified

•        Cleanout of house and outbuildings

•        Water pump repair

A real estate agent was appointed.

The property was placed on the market shortly after the agent was appointed.

You did not find a prospective buyer and the real estate agent changed the sale to a make an offer basis.

You did not have any offers other than the one which resulted in the sale of the property

The contract for sale was signed approximately ten months after the property was put on the market.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195