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Edited version of private advice
Authorisation Number: 1051974716030
Date of advice: 12 May 2022
Ruling
Subject: CGT - deceased estates - Commissioner's discretion to extend two-year period
Question
Will the Commissioner allow an extension of time for you to dispose of your ownership interest in the dwelling and adjacent two hectares of land 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.
Further information regarding the two-hectare limitation can be found by searching ato.gov.au for 'QC 66037' and the legal database on ato.gov.au for Taxation Determination TD 1999/67. Other information about inherited assets and capital gains tax can be found by searching ato.gov.au for 'QC 66052'.
This ruling applies for the following period:
Year ended 30 June 2022
The scheme commences on:
1 July 2021
Relevant facts and circumstances
The deceased owned a property.
The deceased acquired the property before 20 September 1985.
The property is more than two hectares.
The Will was in dispute following the grant of probate.
The legal proceedings ended, and title of the property was transferred to the beneficiary.
A contract to sell the property was entered into soon afterwards, with settlement occurring shortly after.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195
Income Tax Assessment Act 1997 section 118-115
Income Tax Assessment Act 1997 section 118-120