Private ruling: The Commissioner’s discretion to extend the two year time limit to dispose of a dwelling
Date of advice: 18 December 2018
Published: April 2019
Ruling period: Year ended 30 June 2018
Date scheme commenced: 1 July 2017

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 you make on the disposal? | A1: 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 52250' on ato.gov.au

Relevant facts and circumstances: The deceased acquired a dwelling (the dwelling). The deceased passed away some time ago. The dwelling was the deceased’s main residence. The transfer of title for the dwelling was delayed by the Executor taking long periods of time to complete paperwork. Due to the nature of the deceased’s death the Coroner is holding an inquest into the cause of the death. To get to this point the beneficiaries have had to advocate and spend a lot of time and focus on the inquest. This process is still ongoing, restricting their ability to carry out these tasks as quickly as anticipated. The dwelling was placed on the market for sale. A contract for sale was entered into in 2018 and settlement occurred shortly after .

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 subsection 118-130(3) | Income Tax Assessment Act 1997 section 118-195 | Income Tax Assessment Act 1997 subsection 118-195(1)