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Edited version of private advice
Authorisation Number: 1051853583868
Date of advice: 18 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 late 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 periods:
Year ending 30 June 20XX
Year ending 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
At some time before September 1985, the deceased bought a house.
In early 20XX, the deceased passed away.
Shortly after, individuals challenged the will placed a caveat on any application for probate.
In early 20XX, the caveat was removed and the challenge to the will was dropped.
In mid-20XX, the Executor completed and submitted a new affidavit.
In late 20XX, probate issued.
In early 20XX, the Executor sought legal advice and arranged the house to be transferred out of the deceased's name and into the Executor's name on behalf of the Estate.
Shortly after, the contract of sale was prepared and issued to the real estate agent.
In mid-20XX, the house was passed in at auction.
Shortly after, contracts for the sale of the house were exchanged.
At the request of the buyer, settlement is to occur in late 20XX. (Less than three years after the deceased passed away).
Relevant legislative provisions
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