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Edited version of private advice
Authorisation Number: 1051837014424
Date of advice: 21 June 2021
Ruling
Subject: Capital gains tax - Commissioner's discretion extension to two year period
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 periods:
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The deceased passed away during the year ended 30 June 20XX.
The property comprised of five adjacent lots, Lots 1, 2, 3, 4 and 5, was purchased by the deceased and their spouse (the deceased's spouse) as tenants in common before 19 September 1985.
The deceased's dwelling was on Lot 1. The other lots were vacant and adjacent to Lot 1.
The deceased's will provided that the deceased's spouse was granted a right to occupy the property for the duration of her life.
The deceased's spouse passed away during the year ended 30 June 20XX.
The deceased's spouse treated the property as their main residence until their death.
Both the deceased's and deceased's spouse's wills respectively left their shares in the property to their X children.
Lots 1, 2 and 3 were sold together, settlement occurred on during the year ended 30 June 20XX. The combined area of the three lots is less than 2 hectares.
Lots 4 and 5 were sold separately from the dwelling and the sales of these lots are not exempt from capital gains tax pursuant to section 118-165 of the Income Tax Assessment Act 1997.
Relevant legislative provisions
Income Tax Assessment 1997 section 118-195
Income Tax Assessment 1997 section 118-120
Income Tax Assessment 1997 section 118-165