Private ruling: Commissioner's discretion - inherited dwelling
Date of advice: 14 November 2023
Published: 8 January 2024
Ruling period: Year end 30 June 20XX | Year end 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion under section 118-195 of 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? | 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: The deceased passed away on XX July 20XX. The deceased acquired the property after 20 September 1985. The property was the main residence of the deceased just before they passed away and was not used to produce assessable income at that time. The property was situated on less than two hectares of land. The deceased's Will, dated XX December 19XX, gave thier children, X and Y (both beneficiaries), the right to reside in the property during their lifetimes. Probate was granted on XX January 20XX. The property was not sold within 2 years of Date of Death due to the deceased's children being given an ongoing right to live in the property. The property was the main residence of both children until their Date of Death. X passed away XX May 20XX. Y passed away on XX December 20XX. All furniture and effects were cleared from the property and the property was listed for sale on XX June 20XX The sale contract for the property was signed on XX July 20XX with settlement occurred on XX August 20XX. The property was not used to produce income.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 118-195 (1)