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Edited version of private advice
Authorisation Number: 1052214381158
Date of advice: 29 January 2024
Ruling
Subject: CGT-2-year disposal discretion
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 private ruling applies for the following period:
Year ending X June 20XX.
The scheme commenced on:
X July 20XX.
Relevant facts and circumstances
The Property is located at location A
The deceased purchased the Property in 19YY.
The Property land size is greater than 2 hectares.
The Property was used as the deceased's and their spouse's main residence throughout their lifetime.
The adjacent land was used primarily for private and domestic purposes in association with the dwelling.
After the deceased's passing, their spouse became the life tenant of the Property under the deceased's Will.
The spouse remained in the Property until their death in 20XX.
After the spouse's passing, the executors of the Will received two valuations of the Property and put the Property up for sale.
The Property settled in 20XX.
The Property was never used for incoming producing purposes.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-120
Income Tax Assessment Act 1997 section 118-195