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Edited version of private advice
Authorisation Number: 1051943992264
Date of advice: 27 January 2022
Ruling
Subject: Commissioner's discretion - inherited 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 or loss you made on the disposal?
Answer
Yes.
It is noted that significant repairs were undertaken to the property which generally is a factor that would weigh against the granting of an extension as you could have chosen to sell the property in an 'as is' condition. However, these repairs were completed several months before the expiry of the two-year period such that the property could have been disposed of within the allowable period if it had not been for subsequent circumstances that delayed the sale. These other circumstances were beyond your control. After weighing up all of the relevant factors, both favourable and unfavourable, having regard to all the facts and circumstances, 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:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The property was the deceased's main residence.
The property was never used to produce income.
The property is located on land that is less than two hectares.
The deceased passed away on XX/XX/XXX.
Probate was granted on XX/XX/XXXX.
The Will had been initially challenged which had resulted in the delay of the disposal of the assets of the estate (less than 12 months delay).
Significant repairs were undertaken to the property. These repairs were completed on XX/XX/XXXX.
Subsequent to the repairs being completed there were circumstances that were beyond your control that delayed the sale of the property.
After those circumstances were resolved the property was sold on XX/XX/XXXX with settlement occurring on XX/XX/XXXX.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)