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Edited version of private advice
Authorisation Number: 1051917203749
Date of advice: 5 November 2021
Ruling
Subject: Commissioner's discretion - extension of time to dispose of a 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?
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
This ruling applies for the following period:
Year ended 30 June 20xx
The scheme commences on:
1 July 20xx
Relevant facts and circumstances
Your parents purchased a property as joint tenants on xx/xx/19xx in which they resided up until their respective dates of death.
When parent A passed away in xx/20xx, their share of the property passed to parent B.
The dwelling was the main residence of parent B (the deceased) prior to their death on xx/xx/20xx.
The property was never used to derive assessable income.
The deceased's will appointed you (child of the deceased) as the sole executor and trustee of the estate.
In xx/ 20xx while making plans to finalise the estate, you fell seriously and consistently ill with multiple diagnosed medical conditions which have persisted and are ongoing. Your illness has resulted in multiple ongoing tests, procedures and hospitalisations.
Your serious medical conditions delayed your administration of the estate and the sale of the property.
In early 20xx you approached a real estate agent to commence the sale process when you then signed the residential sales agency agreement on xx/xx/20xx.
The property was auctioned on xx/xx/20xx where a contract was signed. On xx/xx/20xx the purchaser was unable to pay a deposit and sought to terminate the contract of sale.
On xx/xx/20xx a further contract of sale was entered into outside of auction terms and subject to finance.
Settlement occurred on xx/xx/20xx.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)