Edited version of private advice

Authorisation number: 1052278280370

Date of advice: 18 July 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 to dispose of your 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 private ruling applies for the following period:

Year ending X June 20XX.

The scheme commenced on:

X July 20XX.

Relevant facts and circumstances

The deceased purchased the Property in 20XX.

The Property was the main residence of the deceased until their death in 20XX.

The contents of the estate included the Property and around $X which was used to cover outstanding debts of the deceased.

You were named as executor in the deceased's Will.

You were not given a life interest in the Property.

The Property was never rented out and sat empty from the date of the death of the deceased and date of sale.

You suffered an extended grieving period after the deceased's passing.

Sometime between 20XX and 20XX your marriage broke down and you subsequently obtained a domestic violence order against your ex-spouse in 20XX.

In 20XX, you began to prepare the property for sale and found the Property was subject to a caveat.

You were financially unable to progress the sale of the Property, and its associated costs, quickly.

The caveat was unable to be removed until 20XX.

You engaged a real estate agent shortly after the caveat removal and the Property was listed for sale.

The Property was sold in 20XX.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195