| Disclaimer 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: 1052131976391
Date of advice: 23 June 2023
Ruling
Subject: Capital gains tax
Question
Will the Commissioner exercise the discretion under section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997) 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 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 XX/XX/20XX
The scheme commenced on:
XX/XX/20XX
Relevant facts and circumstances
The Deceased passed away on 22 March 2015.
As at the date of death, the Deceased owned the Property.
The Property had been purchased by the Deceased prior to 20 September 1985 and was less than 2 hectares in size.
The Property was never used to produce assessable income.
On XX/XX/20XX, probate of the Will was granted to the Executor.
The Executor attended to transmitting title to the Property into the name of you and Person A as the named beneficiaries in the Will.
The Property was the main residence of Person A from the Deceased's death until their ownership interest ended.
Person A has suffered debilitating health issues for many years which have required hospitalisation. Person A also acquired an injury several years ago. Person A has been on a medical pension for several years.
Person A was not in a position to vacate the Property due to their health issues and the significant sentimental value of the Property to Person A. There was a risk that moving Person A from the Property without adequate support, or whilst they were unprepared to do so, would result in Person A suffering harm or a further deterioration in their health.
In 20XX, Person A obtained funding for their disability. With the assistance of support workers, Person A reached a point in late 20XX where they were able of vacating the Property. Around this time, you engaged a real estate agent to place the Property on the market and attended to minor repairs and maintenance on the Property.
On XX/XX/20XX, you and Person A entered a contract to sell the Property with settlement occurring on XX/XX/20XX.
Relevant legislative provisions
Income Tax Assessment Act 1197 section 118-195