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Edited version of private advice
Authorisation Number: 1051845994899
Date of advice: 1 June 2021
Ruling
Subject: Commissioner's discretion to extend the two-year time limit to dispose of a house
Question
Will the Commissioner allow an extension of time to mid-2021 for you to dispose of your ownership interest in the house 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 ending 30 June 2021
The scheme commenced on:
1 July 2020
Relevant facts and circumstances
The deceased bought a property (the house) in 2014.
The house was the deceased's main residence at time of their death and was not being rented.
The deceased passed away intestate in 2019.
At the time deceased's death, the deceased parent became solely entitled to the deceased's estate under the intestate Rules of Probate.
In mid-2019, the deceased's parent renounced their right and entitlement to the Letters of Administration. A short time later, the deceased's siblings applied for the Letters of Administration.
The deceased's other parent passed away in late 2019. A short time later, the Probate Court discontinued the deceased's siblings' application as they deemed the renunciation was not adequately completed.
After the deceased's siblings submitted two subsequent applications, probate was granted late 2020.
The house was listed for sale and settlement occurred mid-2021.
Relevant legislative provisions
Income Tax Assessment Act 1997 subdivision 115-A
Income Tax Assessment Act 1997 section 102-20
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 section 118-120
Income Tax Assessment Act 1997 section 118-130
Income Tax Assessment Act 1997 section 118-195