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You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of private advice

Authorisation Number: 1052020648059

Date of advice: 12 August 2022

Ruling

Subject: CGT - property

Question

Will the Commissioner exercise the discretion to allow an extension of time for you to dispose of your ownership interest in the property and disregard the capital gain or capital 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 about the Commissioner's discretion can be found by searching ato.gov.au for 'QC 66057'.

This ruling applies for the following period:

Year ended 30 June 20XX

Year ended 30 June 20XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

The deceased bought the property before 1985.

The deceased passed away after 1985.

The property was situated on less than 2 hectares of land.

You spent several months at the start of the 2 year-period managing a complaint regarding the deceased's care just before their death.

You spent a large portion of the 2 year period making many trips to the property to clean up, clear belongings and sell items. The property contained a large volume of items located in the house and numerous large sheds.

After the house was prepared for sale, you engaged several real estate agents to come to the property to give a property appraisal.

You suffered a health concern while working at the property. At this time, you were considering going to auction with a 6 week marketing campaign. This was postponed due to your inability to help with the preparations.

You spent some time in hospital and received home care. After the home care ended, you entered into a contract to sell the property with settlement occurring less than 7 months after the end of the 2 year period.

Relevant legislative provisions

Income Tax Assessment Act 1997 Section 118-195