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Edited version of private advice
Authorisation Number: 1051896603509
Date of advice: 27 September 2021
Ruling
Subject: Capital gains tax
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 will allow an extension of time.
This ruling applies for the following period:
Year ended 30 June 2021
The scheme commences on:
1 July 2020
Relevant facts and circumstances
The deceased passed away several years ago.
The property was the main residence of the deceased.
The property was purchased before DD MMM 19YY.
In the last few years, the deceased was unable to keep up with the maintenance necessary to look after the property.
Due to the extensive amount of belongings that had accumulated over the decades that the deceased had been living in the property it took a considerable amount of time to clear out the property.
You also had to remove the carpet and lino and wash down the walls and ceiling due to an extensive mold build up.
About the time that you were completing the clean up the area was endangered by bush fires that continued for several months and due to the high risk area you were in, which was close to the main fire fronts, you had to be evacuated several times due to the life threatening nature of the threat.
Another family in the area had been left homeless by the bushfires and you allowed them to stay in the property rent free.
The Covid-19 pandemic followed shortly after the bushfires had been contained and you allowed another family to live in the property rent free as they were unable to secure accommodation and were suffering financial hardship.
After the main lockdown period of the pandemic finished you placed the property on the market.
The property was sold, and settlement occurred about three years after the date of death.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195