Edited version of private advice

Authorisation Number: 1051926401326

Date of advice: 1 December 2021

Ruling

Subject: Inherited dwelling - Commissioner's discretion

Question

Will the Commissioner allow for an extension of the two-year rule under section 118-195 of the Income Tax Assessment Act 1997 on the sale of the dwelling and adjacent two hectares of land?

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 ending 30 June 2022

The scheme commences on:

1 July 2021

Relevant facts and circumstances

The deceased passed away on XX/XX/XXXX.

The property was the deceased's main residence up until his death.

The property was not then being used to derive income.

The deceased's original Will could not be located, and delays were encountered as it was necessary to engage investigators to locate the intestacy beneficiaries of the deceased overseas.

Further delays were caused as there was no administrator appointed and there was an ongoing legal dispute with respect to the estate.

The dispute was ultimately settled by the execution of a Deed of Compromise and subsequent Court Order dated XX/XX/XXXX that appointed an administrator.

Letters of Administration were granted on XX/XX/XXXX.

The property was sold with settlement occurring within X months of the appointment of the administrator.

Relevant legislative provisions

Income Tax Assessment Act 1997 subsection 118-195(1)