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Edited version of private advice
Authorisation Number: 1051855607323
Date of advice: 23 June 2021
Ruling
Subject: 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 is able to apply his discretion for up to two hectares of land with your dwelling under subsection 118-195(1) of the ITAA 1997 and 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
Year ended 30 June 20XX
The scheme commences on
1 July 20XX
Relevant facts
The deceased acquired a dwelling (the dwelling).
The deceased passed away in 20XX. (The deceased)
The dwelling is located on land that is less than two hectares.
The dwelling was the deceased's main residence.
The dwelling was also occupied by your sibling (sibling A).
You undertook a detailed search in Australia and overseas for the last will of the deceased. This caused some delays and eventually you applied to the Court for and were granted letters of administration.
Sibling A was reluctant to vacate the dwelling for a period of time and you were unwilling to commence legal proceedings to remove them from the dwelling.
Suitable alternative accommodation was found for sibling A.
You have been visiting the dwelling and removing rubbish and undertaking some repairs.
Covid-19 has impacted on your ability to do this.
The dwelling was listed for sale by auction recently.
Settlement is expected to occur on xx xx 20XX (just outside the two year period).
Assumption
For the purpose of this ruling, it is assumed that settlement will occur by a set 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