Private ruling: Commissioner's discretion to allow more time to dispose of a dwelling
Date of advice: 1 April 2021
Published: June 2021
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner 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 'QC 52250' on ato.gov.au

Relevant facts and circumstances: The deceased passed away. The deceased purchased a property as joint tenants with their spouse pre capital gains tax (CGT). The property was the deceased's main residence up until date of death. The deceased's spouse passed away on # March 20## they inherited their ownership interest. Therefore, the deceased held 50% pre-CGT and 50% post-CGT interests in the property. The deceased left a will naming the executor and named beneficiaries. One of the beneficiaries improperly obtained a mortgage over the property prior to the deceased passing. Attempts to resolve the matter outside court were made however this avenue proved unsuccessful and legal proceedings began. Legal representation was engaged, and a statement of claim was lodged. Legal proceedings were settled, and the mortgage discharged. The property was listed for sale with a Real Estate. A potential buyer made on offer for the property, however their finance was formally denied. Some repairs and maintenance occurred on the property but otherwise remained vacant. The property was taken off the market due to the COVID 19 pandemic however the estate continued their engagement with the Real Estate. The property was withdrawn from the market for a short period during the pandemic as property inspections were restricted by social distancing. The property was returned to the open market and a final offer was accepted on # July 20## and settlement occurred.

Relevant legislative provisions: Income Tax Assessment Act 1 997 subsection 118-195(1)