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Edited version of private advice
Authorisation Number: 1052190573881
Date of advice: 9 November 2023
Ruling
Subject: CGT - ownership disposal
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 to dispose of the ownership interest in the Property and disregard the capital gain 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 ending 30 June 2024
The scheme commenced on:
1 July 2023
Relevant facts and circumstances
The deceased passed away a couple of years ago.
The property was acquired by the deceased a number of decades ago as joint tenant.
The remainder of the property was acquired by the deceased in a later year.
The property was the deceased main residence for the whole of their ownership period.
The property was never used to produce income.
The property was less than 2 hectares in size.
The deceased passed away intestate.
It was determined that the deceased's children were the beneficiaries of the property.
Some of the beneficiaries wanted the property to be sold.
Another beneficiary had been living in the property prior to the deceased's death and remained in the property.
That beneficiary would not engage with the public trustee.
The beneficiary refused to vacate the property.
An application was made to evict the beneficiary from the property.
A order was issued stating that the beneficiary had a period of time to vacate the property.
The beneficiary failed to vacate the property and was removed by police after the period had elapsed.
The Trustee continued to try and communicate with the beneficiary regarding removal of their belongings, but they refused to engage.
The property was cleared out in the following year.
An auction was held a couple of months later.
The property sold and settled a few months later.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195