Edited version of private advice

Authorisation Number: 1051963378237

Date of advice: 31 March 2022

Ruling

Subject: The Commissioner's discretion to allow more time to dispose of a dwelling and disregard the capital gain or loss made on the disposal.

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.

Having considered your circumstances and the relevant factors the Commissioner will allow an extension of time.

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 passed away on xx/xx/20xx.

The dwelling was the main residence of the deceased just before their death and not used to produce income at that time.

The land adjacent to the dwelling is less than two hectares in area.

Probate was granted for the deceased on xx/xx/20xx.

The Will of the deceased appointed their children, A and B as Executors.

The Will of the deceased granted a right to reside in the dwelling to B for life.

B resided in the dwelling until the date of their passing.

A received legal advice that the title on the dwelling could not be changed to them as sole executor of the estate until the death certificate for B was received.

There were delays that prevented receiving the death certificate for B which held up the title transfer.

Following the issue of the death certificate on xx/xx/20xx, action was promptly taken to formally update the title to then allow the process of sale to commence.

A real estate agent was engaged to sell the dwelling on xx/xx/20xx.

The dwelling was auctioned a month later and contract of sale was signed on the same day.

Settlement occurred on xx/xx/20xx.

Relevant legislative provisions

Income Tax Assessment Act 1997 subsection 118-195(1)