| 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: 1052188756245
Date of advice: 20 November 2023
Ruling
Subject: Commissioner's discretion extension of time
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 for up to 2 hectares of land?
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 ending 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
Before 1985, the deceased bought the property with their spouse.
After 1985, the deceased's spouse passed away.
The property was the deceased's main residence for their entire ownership period and was never used to produce income.
The property land size is greater than 2 hectares.
After 1985, the deceased passed away.
Shortly after, probate was granted.
The deceased's will appointed their children Executors and Trustees of their will.
The deceased's will permitted Person A to reside in the property for 3 years. Further, it provided, they may reside in the property until they remarry or live in a de facto relationship or does not reside in the property for 6 consecutive months.
3 years after the deceased passed away Person A vacated the property as permitted by the deceased's will.
Shortly after, you attended to cleaning the property and removing items including some large items from the shed on the property.
You engaged Real Estate Agent A to sell the property.
Later, you signed a new agency agreement with Real Estate Agent B.
Later, you sent the contract of sale to the purchaser's solicitor.
Shortly after, you exchanged contracts for the sale of the property.
Shortly after, the sale of the property settled just over a year after Person A vacated.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subsection 118-195(1)
Income Tax Assessment Act 1997 Section 118-120