Edited version of private advice

Authorisation Number: 1051998131017

Date of advice: 23 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 197) 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 ending 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

The deceased died several years ago.

The property was purchased by the deceased prior to 1985.

The property was the deceased's main residence for the whole of is ownership period.

The property was never used to produce income.

The property was less than 2 hectares.

The property remained vacant after the deceased's death until it was sold.

Probate was granted several months after the deceased died.

The property was placed on the market more than two years after probate was granted and sold in the following month.

The reasons for the property not being sold within the 2 year time period was due to the pandemic lock downs and you working interstate.

Your sibling was also subject to the lock downs and their spouse was seriously ill throughout this period.

The lock downs meant you were not able to clean the property out and prepare it for sale and it was difficult to advertise properties for sale where people were limited in their travel.

The property was placed on the market as soon as possible once restrictions were lifted and travel could commence.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195