Edited version of private advice

Authorisation Number: 1052345507060

Date of advice: 19 December 2024

Ruling

Subject: Commissioners discretion - 2 year disposal

Question 1

Will the Commissioner exercise the discretion under section 118-195 of the Income Tax Assessment Act 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 of the property?

Answer 1

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 XX June 20XX

The scheme commenced on:

X July 20XX

Relevant facts and circumstances

The deceased died on X September 20XX.

Probate was granted to the executor on X May 20XX.

The deceased acquired the Property in September 19XX as joint tenants with their spouse.

The deceased's spouse died on X June 20XX and their ownership interest subsequently passed to the deceased as the surviving joint tenant.

The deceased resided in the Property up until the date of their death and at no point in time was the Property used to produce assessable income.

The deceased's Will stipulated that their child be given a right to reside in the Property for as long as they live.

The deceased's child had resided in the Property for the entirety of their life.

The deceased's child died sometime between XX April 20XX and XX April 20XX.

A contract for sale of the Property occurred on XX July 20XX.

The executor sold the Property on XX August 20XX.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195