Private ruling: Commissioner’s discretion to extend the two year time limit to dispose of a dwelling.
Date of advice: 28 November 2018
Published: March 2019
Ruling period: Year ended 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Will the Commissioner allow an extension of time to the date of settlement 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 in 2014 (the deceased). The dwelling was acquired in 1975. The dwelling was the deceased’s main residence. The dwelling was not used for income producing activities and no income has been received from the dwelling after the passing of the deceased. The deceased’s will contained a provision which allowed the deceased’s daughter to reside in the dwelling until such time as the deceased’s daughter acquired a new dwelling. This caused a delay in the sale of the dwelling. You are a beneficiary of the estate. The beneficiaries made a capital gain on the sale of the property. Settlement occurred in 2017.

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)