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Edited version of private advice
Authorisation Number: 1052192030283
Date of advice: 14 November 2023
Ruling
Subject: Commissioner's discretion - inherited dwelling
Question
Will the Commissioner exercise the discretion under section 118-195 of ITAA 1997 to allow an extension of time for you to dispose of your ownership interest in the dwelling 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 periods:
Year end 30 June 20XX
Year end 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The deceased passed away on XX July 20XX.
The deceased acquired the property after 20 September 1985.
The property was the main residence of the deceased just before they passed away and was not used to produce assessable income at that time.
The property was situated on less than two hectares of land.
The deceased's Will, dated XX December 19XX, gave thier children, X and Y (both beneficiaries), the right to reside in the property during their lifetimes.
Probate was granted on XX January 20XX.
The property was not sold within 2 years of Date of Death due to the deceased's children being given an ongoing right to live in the property.
The property was the main residence of both children until their Date of Death.
X passed away XX May 20XX. Y passed away on XX December 20XX.
All furniture and effects were cleared from the property and the property was listed for sale on XX June 20XX
The sale contract for the property was signed on XX July 20XX with settlement occurred on XX August 20XX.
The property was not used to produce income.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195 (1)