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Edited version of private advice
Authorisation Number: 1051849916457
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 early 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 ending 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
The deceased passed away in late 20XX.
As part of the deceased's estate, they bequeathed the house to their beneficiaries in equal shares.
You were the Executor of the estate.
The deceased acquired the house at some time before 1985.
In mid-20XX, your relative was diagnosed with disease and passed away in early 20XX.
In 20XX, COVID-19 delayed your plans to sell the house within the 2-year period, including; landlord restrictions on vacating tenants, international and state border restrictions and closures, and city lockdown periods.
You listed the house for sale in early 20XX. A short time after, you exchanged sale contracts and settled.
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