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Edited version of private advice
Authorisation Number: 1051975113813
Date of advice: 28 April 2022
Ruling
Subject: Commissioner's discretion to extend the two-year time limit to dispose of an inherited property
Question
Will the Commissioner allow an extension of time for you to dispose of your ownership interest in the property and disregard the capital gain you make on the disposal?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner will 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 commenced on:
1 July 20XX
Relevant facts and circumstances
At some time before 1985, the deceased purchased the property. It was the deceased's main residence until they passed away.
The property size is less than two hectares.
At some time after 1985, the deceased passed away. The property remained vacant until settlement and was never rented.
There were extensive COVID related lockdowns and restrictions. The Trustee found selling the property difficult and the project was disrupted multiple times.
After the last COVID restrictions were lifted the house was sold in agreement with the buyer's special condition of an extended settlement date. The house settled within three months after the two-year period expired.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195