Private ruling: Capital gains tax - two year discretion
Date of advice: 4 December 2020
Published: January 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 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 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)


Relevant facts: The deceased acquired a dwelling. (The dwelling). | The deceased passed away in 20XX. (The deceased) | The dwelling had been the deceased's main residence prior to passing away. | A dispute arose between the potential beneficiaries as to the distribution of the estate. | An executor of the estate had changed the locks on the dwelling and restricted access to the dwelling. This caused delays in clearing the property of personal possessions and making the necessary preparations for the sale of the dwelling. | Delays were also experienced as there were two wills prepared by the deceased and an executor asserted that the deceased may have lacked testamentary capacity in relation to the last will. | Discussions with legal practitioners resulted in probate being obtained. | COVID 19 also impacted on your ability to sell the dwelling and caused some delays. | Settlement occurred in 20XX.