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Edited version of private advice
Authorisation Number: 1051956466682
Date of advice: 1 March 2022
Ruling
Subject: Commissioner's 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 located 'X' 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. 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
The deceased acquired dwelling (the dwelling).
The deceased passed away in 20XX. (The deceased)
The last known will of the deceased was unable to be located despite extensive searches of the deceased's dwelling.
The beneficiaries changed legal representatives and prepared an application for letters of administration. This was granted in 20XX to the deceased's child ('child A')
There was no one else prepared to act in the role as administrator.
Child A also resided in the dwelling and subsequent to the passing of the deceased has experienced a number of medical conditions and serious personal circumstances which has prevented them from attending to the sale of the dwelling.
Child A has been hospitalised as a result and has attended the local medical centre on approximately XX occasions.
The deceased left grandchildren who are children of their deceased child who are beneficiaries of the estate. The beneficiaries had planned to purchase the dwelling from the estate, however they were unable to acquire sufficient funding. This caused delays as the sale was put on hold whilst the finance was awaiting approval.
Covid-19 has also had some impact on your ability to progress the sale of the dwelling.
You entered into a contract for the sale of the dwelling on XX XXX 20XX.
Settlement occurred a short time later.