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Edited version of private advice
Authorisation Number: 1051939176334
Date of advice: 20 January 2022
Ruling
Subject: Capital gains tax
Question
Will the Commissioner exercise his discretion under section 118-195 of the Income Tax Assessment Act 1997 to extend the two-year period to dispose of the dwelling to the settlement date?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner will extend the two-year period to dispose of the dwelling to the settlement date. Further information about this discretion can be found by searching 'QC 66057' on ato.gov.au
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The Deceased died several years ago.
At the date of the Deceased's death, the Deceased owned the Dwelling.
The Deceased inherited the Dwelling from the Deceased's parents a few decades ago prior to post-CGT.
The Deceased lived in the Dwelling as their main residence from the time they acquired the Property until the date of death.
At the time of the Deceased's death, the Dwelling was not being used for the purpose of producing assessable income.
The Dwelling is on land that is less than two hectares.
The Deceased left a Will.
The executors were appointed to administer the estate under the Will.
Probate of the Will was granted to the executors a few months after the date of death.
Under the Will, one of the executors was granted the right to use and occupy the Dwelling and to receive the rents and profits on it during their lifetime and they were responsible for the payment of all rates and taxes and insurance premiums and the general care and maintenance of the Dwelling.
The executor lived in the Dwelling from the time of the Deceased's death until the time of they died.
The Property was not used to produce assessable income from the time of the Deceased's death until the time of the executor's death.
The Property was sold by the surviving executor in the open market for market value soon after and settlement occurred.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195