Private ruling: Commissioner's discretion to extend the two-year time limit to dispose of an inherited property
Date of advice: 5 July 2022
Published: October 2022
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion to allow an extension of time for you to dispose of your ownership interest in the dwelling and disregard the capital gain or loss you made on the disposal? | A1: 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'.

Relevant facts and circumstances: At some time after 1985, the deceased and their spouse bought the property as joint tenants. It was their main residence until they each passed away. The property size is less than 2 hectares. The deceased's spouse passed away and shortly after, the deceased passed away. The children of the deceased (the Trustees) were initially not ready to start preparing the property for sale and were grieving from the shock of losing both their parents within a short period. Later, probate was granted. There were various periods of significant COVID restrictions for the area. The Trustees promptly sold the property once restrictions eased. The property settled within one month after the two-year period ended.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 118-195