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Edited version of private advice
Authorisation Number: 1051987539058
Date of advice: 8 June 2022
Ruling
Subject: Capital gains tax
Question
Will the Commissioner exercise his discretion under section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the two-year period to dispose of the dwelling?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner will extend the two-year period to dispose of the dwelling. 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 and circumstances
The deceased died several years ago.
The property situated was the deceased's main residence for the whole of their ownership period.
The property was not used to produce assessable income.
Probate was granted later in the same year.
The property was less than 2 hectares.
The deceased gave their long term housemate and friend a life interest in the property under the will.
The friend was able to live there until they died or vacated the property.
A few years later, the friend gave notice that they were vacating the property.
In that same year, the property was transferred into your name as beneficiary of the property under the will.
Due to the government lockdowns you were not able to travel to organise the property for sale.
Early in the following year, the property was advertised for sale.
The property sold at Auction a couple of months later.
Settlement occurred within a few weeks.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195