Private ruling: Capital Gains Tax on an inherited dwelling
Date of advice: 22 January 2020
Published: March 2020
Ruling period: Year ended June 2019
Date scheme commenced: 1 July 2018

Ruling: Q1: Will the Commissioner allow an extension of time to XX/XX/20XX 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: You inherited the deceased's main residence. The property was never rented out and it did not produce any assessable income.. Probate was originally granted xx/xx/xxxx. The Will was contested by siblings and final probate was granted xx/xx/xxxx. In order to restore the property to a saleable condition, it required extensive repairs and maintenance as the deceased was a hoarder and suffered dementia. The property was listed for sale on xx/xx/xxxx at a price set by the real estate agent. There was an easement over the property which made the property more difficult to sell. The price was decreased to attract buyers. A contract of sale was entered into on xx/xx/xxxx and settlement occurred on xx/xx/xxxx.

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