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Edited version of private advice
Authorisation Number: 1051845912417
Date of advice: 2 June
Ruling
Subject: CGT - Commissioner's discretion to extend 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 periods:
Year ended 30 June 2019
Year ended 30 June 2020
Year ending 30 June 2021
The scheme commences on:
1 July 2018
Relevant facts and circumstances
The deceased purchased their home before 20 September 1985.
They lived in the house until they became too ill to continue living there.
From this date the house was rented to provide an income stream to fund their care.
The deceased passed away on during the year ended 30 June 2019.
The deceased appointed their two children as executors and trustees of the Will.
Probate was granted in State A 11 months after the deceased's death.
Probate took some time to be granted as both executors were named in the Will using their nicknames and not their proper names as shown on their identification.
As the property was in State B the executors were required to have the Will be re-sealed in State B.
The State A solicitors did not inform the executors of this requirement and then took an extended period to contact a State B solicitor.
Further delays were then caused by the State B solicitor who began the process of re-sealing then closed their practice without informing the executors or their Queensland solicitor.
The matter was then referred to another State B legal firm who then required further time to familiarise themselves with the matter and requested further funds for filing fees over an extended period.
The property was listed for sale and a sales agreement was signed during the year ending 30 June 2021.
A contract for sale was signed 26 months after the deceased's death and the settlement occurred 28 months after the deceased's death.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195