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Edited version of private advice
Authorisation Number: 5010077441340
Date of advice: 5 October 2021
Ruling
Subject: Commissioner's discretion - inherited house
Question
Will the Commissioner allow an extension of time for you to dispose of your ownership interest in the house and disregard the capital gain you make on the disposal?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner will allow an extension of time. Further information about this discretion can be found by searching 'QC 66057' on ato.gov.au.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
At some time before 1985, the deceased and their spouse acquired the house.
At some time after 1985, the deceased's spouse passed away and the deceased became sole owner of the house. The house was the deceased main residence until they passed away in late 20XX.
In early 20XX, the Executors prepared to administer the estate. It was delayed due to a family dispute over the estate.
From early 20XX to mid-20XX, resolution of the estate and preparations to sell the house were further delayed by COVID-19 restrictions and lockdowns. The house was not made available to rent during this time.
In mid-20XX, the Executors approached a real estate agent to list the property for sale. Listing was delayed due to further lockdowns and restrictions on real estate services. The agent advised the Executor's to paint the inside of the house and add design styling and furniture before listing the house for sale. A short time later, the house was listed for sale.
Assumptions
For the purposes of the ruling, the house will be sold, and settlement will occur within five months of the two-year time limit.
Relevant legislative provisions
Income Tax Assessment Act 1997 subdivision 115-A
Income Tax Assessment Act 1997 section 102-20
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 section 118-120
Income Tax Assessment Act 1997 section 118-130
Income Tax Assessment Act 1997 section 118-195