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Edited version of private advice
Authorisation Number: 1051935571059
Date of advice: 22 December 2021
Ruling
Subject: Commissioners discretion to extend 2 year period
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 and circumstances
The deceased acquired a dwelling. (The dwelling).
The deceased passed away in 20xx. (The deceased)
The dwelling has remained vacant since.
A legal dispute arose between the main beneficiaries of the estate (person 'A') and (person 'B'). Person 'A' is under a disability and their affairs are managed by a Trustee organisation.
The will of the deceased left an amount $X to persona 'A' and the residue to person B''.
The trustee organisation after a period of time put the executors on notice that they intended to commence legal proceedings for further provision from the estate.
Negotiations were undertaken to resolve the dispute and a deed of agreement was completed after a period of time.
Person 'B' resides in another state and COVID-19 restricted their ability to personally attend to the dwelling and prepare the dwelling for sale.
Person 'B' was able to attend the dwelling until XX 202X when travel restrictions were eased.
The dwelling was placed on the market after a period of time.
A contract for the sale of the dwelling was entered into shortly after the dwelling was placed on the market.
The dwelling was prepared for sale and settlement occurred a short time ago.
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