| Disclaimer You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1051849435148
Date of advice: 9 June 2021
Ruling
Subject: Commissioner's discretion to extend the two-year time limit to dispose of an inherited house
Question
Will the Commissioner allow an extension of time to mid-20XX 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 ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The deceased passed away about two years ago.
The title of the house passed to the deceased beneficiaries and joint executors in equal shares.
The deceased acquired the house at some time before 1985.
In 20XX, on advice from your real estate agent you spent considerable time and effort getting the house ready for sale, including; extensive repairs to the roof and guttering, replacement of damaged carpets and painting.
In 20XX, COVID-19 border restrictions delayed progress on necessary house repairs and removals.
You listed the house for sale as soon as the repairs were complete. Shortly after, a prospective buyer terminated the sale just before exchanging contacts.
The house settled in mid-20XX (just outside the two year period).
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