Private ruling: Income Tax – capital gains tax – extension of time to dispose of a dwelling
Date of advice: 11 April 2019
Published: June 2019
Ruling period: Year ended 30 June 20XX
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 property was purchased by the deceased and the spouse in before 20 September 1985. The deceased was pre-deceased by the spouse and the property remained as the main residence until their death. Per the deceased’s Will, all property of the Estate was to be sold (converted into cash) and the cash distributed to the beneficiaries. Within the two years following deceased’s death, the child the sole Executor and Trustee of the Estate became ill and was diagnosed with an illness which eventually led to surgery. Due to their illness, compounded by the loss of the deceased and the distance between the Estate property and their residence the child was unable to attend to the administration of the Estate during this period. The property was settled on XX XXX 20XX. During the period between the deceased death and the sale of the property it remained vacant. At no time has the property been used to produce income.

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