Edited version of private advice

Authorisation Number: 1051891493316

Date of advice: 27 August 2021

Ruling

Subject: Commissioner's discretion - extension of time

Question

Will the Commissioner allow an extension of time for you to dispose of your ownership interest in the dwelling located 'X' 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 66057' 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

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 X hectares.

The dwelling was the deceased's main residence.

The dwelling was occupied by the deceased's family member for a short period before the deceased's family member XXXXXXX in the dwelling.

The traumatic event caused distress to the family members and some delays in preparing the dwelling for sale were experienced as a result.

The dwelling remained vacant until the sale.

You decided that as the dwelling was on a larger sized block that a X lot subdivision was the best way to proceed with the sale.

The lots are identified as lot 'X' and 'Y'.

Covid-19 has also impacted on your ability to prepare the dwelling for sale.

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