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Edited version of private advice
Authorisation Number: 1051929558682
Date of advice: 2 December 2021
Ruling
Subject: The Commissioner's discretion to extend the two year time limit 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 you make on the disposal?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner is able to apply his discretion for up to two hectares of land with your dwelling under subsection 118-195(1) of the ITAA 1997 and allow an extension of time.
This ruling applies for the following period
Year ended 30 June 2022.
The scheme commences on
1 July 2021.
Relevant Facts
The deceased acquired a dwelling (the dwelling).
The dwelling is located on land that is less than two hectares.
The dwelling was the deceased's main residence when they passed away in 20xx.
COVID-19 has impacted on your ability to prepare the dwelling for sale as you encountered difficulties in undertaking some repairs to the dwelling as trades people were in demand.
A significant amount of rubbish was required to be removed
The dwelling was placed on the market and sold a short time later.
The contract is unconditional
Settlement will occur in 20xx.
Assumption
Settlement will occur on or before xx x 20xx
Relevant legislative provisions
Income Tax Assessment Act 1997 subdivision 115-A
Income Tax Assessment Act 1997 section 102-20
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 section 118-120
Income Tax Assessment Act 1997 section 118-130
Income Tax Assessment Act 1997 section 118-195