Edited version of private advice

Authorisation Number: 1052251611497

Date of advice: 5 June 2024

Ruling

Subject: Commissioners discretion - 2-year 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 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 private ruling applies for the following period:

Year ended X June 20XX.

The scheme commenced on:

X July 20XX.

Relevant facts and circumstances

The deceased passed away in 20XX.

The deceased resided at the property with their spouse.

The property is situated on less than 2 hectares of land.

The deceased purchased the property in 19XX and was the main residence of the deceased and the deceased's spouse.

The deceased had 100% ownership interest in the property.

As at the time of the deceased's death, their Will gave their spouse a lifetime right to occupy.

Upon their death, the deceased's spouse remained residing in the property, and maintained expenses associated with same.

The Property was never used to produce assessable income.

The deceased's spouse passed away in April 20XX.

The Property was sold in July 20XX and formally settled in September 20XX.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195