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Edited version of private advice
Authorisation Number: 1051900221220
Date of advice: 23 September 2021
Ruling
Subject: Commissioner's discretion - inherited dwelling
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 or loss you made on the disposal of the dwelling and up to two hectares of land on which the dwelling is situated?
Answer
Yes. Having considered your circumstances and the relevant factors the Commissioner will allow an extension of time. Further information about the Commissioner's discretion can be found by searching 'QC 66057' on ato.gov.au
Further information regarding the two hectare limitation can be found by searching 'QC 66037' on ato.gov.au and for Taxation Determination TD 1999/67 on the legal database on ato.gov.au
This ruling applies for the following period:
Year ended 30 June 20xx
Year ending 30 June 20xx
The scheme commences on:
1 July 20xx
Relevant facts and circumstances
The deceased's main residence was located on land that was over two hectares.
The deceased never used the property for income producing purposes.
Several factors impacted the time taken to dispose of your ownership interest in the property including the following:
• The deceased's elderly parent was living with them at the property at the time of the deceased's death and it took some time to have them to vacate the property.
• The appointed executors of the estate were experiencing personal issues and neglected their duties administering the estate. Petitions to the court had to be completed to have administration and probate granted to the elected beneficiary.
• Covid-19 restrictions impacted on the ability to attend the property to remove the deceased's items and to have the property valued.
You disposed of your ownership interest in the property with settlement occurring X months after the expiry of the 2-year period for disposing of a deceased's main residence.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)
Income Tax assessment Act 1997 section 118-120