Private ruling: Commissioner's discretion - extension of time
Date of advice: 16 August 2024
Published: 30 September 2024
Ruling period: Year ended 30 June 20YY
Date scheme commenced: 1 July 20YY

Ruling: Q1: Will the Commissioner exercise the discretion under Section 118-195 of the Income Tax Assessment Act 1997 and disregard any capital gain from the disposal of your ownership interest in the property? | 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 owned a property (the property). The deceased passed away a number of years ago, and in their Will they left the property in equal shares to the beneficiaries as tenants in common. The property was purchased by the deceased prior to 1985. The property was the deceased main residence just before they passed away. Probate was granted in the year following the date of death. You acquired an ownership interest in the property. The property has never been rented out. The land on which the property is on is less than 2 hectares. Your sibling lived in the property with your parents. Your sibling continued to live in the property until their death. In your sibling's Will, they bequeathed their share of the property to a third party, forcing the administrator to sell the property. Your sibling lived at the property with your parents for a number of years before the death of the deceased. After the death of the deceased, your sibling continued living at the property until they passed away. Your sibling passed away recently. Your sibling was injured in a workplace accident when a number of years ago and suffered traumatic injuries which posed challenges for the rest of their life. The other beneficiaries allowed your sibling to remain in the property for their lifetime. The property was placed on the market and sold as soon as possible after your sibling passing. The property has been sold.

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