Private ruling: Commissioner's discretion for an extension to the two year period
Date of advice: 27 March 2020
Published: May 2020
Ruling period: 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 part of 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 Further information Subsection 118-120(3) of the Income Tax Assessment Act 1997 (ITAA 1997) specifies the maximum area of land covered by the main residence exemption (including the area under the dwelling) must not exceed two hectares. As the property is greater than two hectares in total, only the capital gain relating to the two hectares which includes the main residence dwelling, will be exempt under subsection 118-195(1) of the ITAA 1997.

Relevant facts and circumstances: An individual passed away. The property was the Deceased's principal place of residence. The property was greater than two hectares in size. Probate was granted. The beneficiaries inherited the property from the Estate. An initial contract was entered within two years of the Deceased's death. Settlement did not occur. The property was re-marketed. Another buyer was found and settlement occurred within 12 months of the expiration of the two-year period.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 subsection 118-120(3) | 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)