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Edited version of private advice
Authorisation Number: 1051977900616
Date of advice: 06 May 2022
Ruling
Subject: Capital gains tax - deceased estates - extension to the two-year period to dispose of an inherited dwelling
Question
Will the Commissioner allow an extension of time to XX September 20XX for you to dispose of your ownership interest in the dwelling 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 ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The deceased died several years ago.
The deceased owned a dwelling which was their main residence until their death.
The dwelling was not used to produce assessable income.
The deceased left a life-tenancy to their friend in their will.
The life-tenant lived in the property until they moved into respite care and then permanently into a nursing home.
The dwelling remained vacant from the time the life-tenant entered aged care.
The life-tenant treated the dwelling as their main residence whilst living in the nursing home.
The life tenant died some time after moving into the nursing home.
During the time that the life tenant was living in a nursing home, the property was emptied of belongings and cleaned.
Settlement occurred over two years after the date of the deceased's death.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195