Edited version of private advice

Authorisation Number: 1052242755602

Date of advice: 17 April 2024

Ruling

Subject: Commissioner's discretion - section 118-155

Question

Will the Commissioner exercise discretion under s118-150 and s118-155 to extend the 4-year period for the purpose of Division 118 Income Tax Assessment Act 1997 (ITAA 1997)?

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 62635.

This ruling applies for the following period

Year ended XX XXXX 20YY

The scheme commenced on:

XX XXXX 20YY

Relevant facts and circumstances

On XX XXX XXXX, the Deceased died.

On XX XXX XXXX, the Deceased purchased land.

The Deceased purchased the land for $XX.

The size of the land is X metres squared.

In XXX, the Deceased commenced construction of a dwelling on the land.

The Deceased borrowed funds to undertake the build.

The loan proceeds were expended bringing the property to "lock up" stage.

The Deceased was unable to borrow the full amount of funds to complete the build.

Between XXXX to XXXX, the Deceased continued to build the dwelling using his own employment income to fund the build.

During the above period the Deceased was struck with bouts of illness.

In XXXX, the Deceased was diagnosed with terminal illness.

The Deceased did not complete the build to a satisfactory level to obtain an occupancy certificate.

When the property was being built, the Deceased lived in a Caravan.

It was the intention of the Deceased to treat the property which was being built as their main residence.

On XX XXX XXXX, the contact was signed.

On XX XXX XXXX, the property was settled.

The property sold for $XX.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-150

Income Tax Assessment Act 1997 section 118-155