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Edited version of private advice
Authorisation Number: 1051870131111
Date of advice: 20 July 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 20ZZ 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 2021
The scheme commences on:
1 July 2020
Relevant facts and circumstances
At some time before 1985, the deceased bought the house.
In mid-20XX, the deceased passed away and you inherited the house as beneficiary of the estate.
In late 20XX, your spouse was diagnosed with a medical condition.
In early 20YY, your spouse passed away.
In mid-20YY, probate was granted for the deceased's estate. During the following 12 months you were learning to deal with your own financial affairs which included a company (involving significant and varied investments) a partnership (which operated a primary production business), and a trust. You also applied for probate for your spouse's estate. You were adversely affected by your health condition, and the onset of Covid-19 in 20ZZ and the ensuing restrictions.
In late 20ZZ, a contract for sale of the house was prepared and the house settled. (Less than 4 months after the two-year limit).
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