Edited version of private advice

Authorisation Number: 1051928735912

Date of advice: 6 December 2021

Ruling

Subject: Inherited dwelling - Commissioner's discretion

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:

30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

The deceased acquired the property prior to Capital Gains Tax, with their spouse as joint tenants.

The deceased became the sole owner of the property when the Deceased's spouse passed away post Capital Gains Tax.

The property was the Deceased's main residence for the whole ownership period.

The property was never used to produce income.

The property is located on land that is less than two hectares.

The deceased's adult son also resided at the property from time of purchase until settlement of the sale.

The Deceased passed away on XX/XX/XXXX.

Probate was granted XX/XX/XXXX. Application of Probate was delayed because of the serious personal circumstances of the deceased's adult son in relation to a serious illness. The Executors were appointed power of attorney over them, and their caring responsibilities were the priority during this time and thereafter.

The property was listed for public auction on XX/XX/XXXX. The property sold at auction on XX/XX/XXXX.

The Settlement was finalised on XX/XX/XXXX.

Relevant legislative provisions

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