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Edited version of private advice
Authorisation Number: 1051937852620
Date of advice: 10 January 2022
Ruling
Subject: Extension of time - deceased estate
Question
Will the Commissioner exercise his discretion under section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the two-year period to dispose of the dwelling to XXX 20XX?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner will extend the two-year period to dispose of the dwelling. Further information about this discretion can be found by searching 'QC 66057' on ato.gov.au
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The deceased died in the 20XX income year.
The property was the deceased's main residence.
The property was inherited by the deceased in 20XX. The deceased obtained a 2/4 share in the property.
The property was not used to derive income.
The property was the deceased's main residence just before she died.
Probate was granted in the 20XX income year.
You inherited the deceased's interest in the property and this interest was transferred to you.
The property was less than 2 hectares.
The reasons for the delay in selling the property within 2 years was as follows:
• Both you and your sibling lived some distance from the property and needed to co-ordinate times to prepare the property
• There were bush fires in the area which prevented travel between December 20XX and February 20XX
• Covid restrictions then restricted travel between states from March 20XX
• Two family members had considerable medical issues which required hospital treatment
• One family member has on going medical issues which required treatment throughout this period and are continuing today.
The property was sold X months outside the 2-year time period.
The property was settled on XXXX 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195