Private ruling: Capital gains tax - Commissioner's discretion to extend the two year period
Date of advice: 30 November 2020
Published: January 2021
Ruling period: Year ending 30 June 2020
Date scheme commenced: 1 July 2019

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 facts and circumstances: The deceased passed away on XX May 20XX. The property was the deceased's main residence prior to their death. The property was not used to produce assessable income. Following the passing of the deceased, the property was held by the Public Trustee while the beneficiaries attempted to resolve a dispute between them in relation to the sale of the property. The Public Trustee took action to sell the property as soon as the dispute was resolved and listed the property for sale in December 20XX. The property was sold with contract of sale dated XX January 20XX and settlement occurring XX February 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 118-195(1)