Private ruling: Commissioner's discretion to extend 2 year period
Date of advice: 17 August 2021
Published: October 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 is able to apply his discretion for up to two hectares of land with your dwelling under subsection 118-195(1) of the ITAA 1997 and 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: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. The deceased acquired a dwelling (the dwelling). The deceased passed away. (The deceased) The dwelling is located on land that is less than two hectares. The dwelling was the deceased's main residence. The dwelling was occupied by the deceased's family members who were also the beneficiaries of the estate. The estate had debts which required the dwelling to be sold in order to pay. A dispute arose as the beneficiaries refused to vacate the dwelling. You were required to seek legal advice in relation to commencing legal proceedings in 20XX to have the beneficiaries evicted from the dwelling. The Court granted the eviction order on XX Month 20XX. The sheriff attended the dwelling on XX Month 20XX to serve the eviction order. You then commenced the sale process however on attending the dwelling you became aware that the beneficiaries had returned to the dwelling and changed the locks. You investigated all other means of negotiation with the beneficiaries in order prevent further application to evict the beneficiaries a second time. This proved unsuccessful and you again sought orders to evict and these were granted on XX Month 20XX. Due to COVID 19 the Sheriff was not able to attend the dwelling to serve the order until XX Month 20XX. You immediately obtained possession and commenced preparing the dwelling for sale. The dwelling was sold on XX Month 20XX at an online auction. Settlement occurred a short time later.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subdivision 115-A | Income Tax Assessment Act 1997 section 102-20 | Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 section 118-120 | Income Tax Assessment Act 1997 section 118-130 | Income Tax Assessment Act 1997 section 118-195