Private ruling: Commissioner's discretion - extension of time
Date of advice: 11 April 2024
Published: 20 May 2024
Ruling period: Year ending 30 June 20XX
Date scheme commenced: XX XX 20XX

Ruling: Q1: Will the Commissioner exercise the discretion under section 118-195 of the Income Tax Assessment Act 1997 to allow an extension of time for you to dispose of your ownership interest in the dwelling and disregard the capital gain or capital loss you made on the disposal for up to 2 hectares of land? | A1: Yes. Having considered your circumstances and the relevant factors the Commissioner will allow an extension of time under section 118-195 of the Income Tax Assessment Act 1997 . Further information about the Commissioner's discretion can be found by searching ato.gov.au for 'QC 66057'.

Relevant facts and circumstances: In XX 19XX, the deceased purchased a property with their late spouse. There was a house (the dwelling) on the property. The property land size was greater than 2 hectares. The dwelling and land up to 2 hectares was not used for income producing purposes at the time of the deceased's death. The deceased's spouse passed away in XX 20XX. Until 20XX-20XX, the deceased operated the farm in their own name. The property was leased to many business entities. The dwelling was the deceased's main residence until their death on XX XX 20XX. Draft contracts were drawn up to purchase the farm, but they were not settled due to financial difficulties of the prospective purchaser. The child of the deceased and their spouse were appointed executors. Due to exceptional factors, the property was not able to be settled within 2 years. On XX XX 20XX, the farm was sold under contract. On XX XX 20XX, settlement occurred.

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