Private ruling: CGT - Commissioner's discretion to extend the two year period
Date of advice: 18 March 2021
Published: May 2021
Ruling period: Year ended 30 June 2021.
Date scheme commenced: 1 July 2020.

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 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 section118-120 | Income Tax Assessment Act 1997 section118-130 | Income Tax Assessment Act 1997 section 118-195


Relevant facts: Person A and Person B acquired as joint tenants a dwelling (the dwelling). | The dwelling was the main residence of person A. | Person B's share of the dwelling was acquired by person C in 20XX. | The dwelling was held as tenants in common in equal shares. | Person A passed away in 20XX. (The deceased) | Person A occupied the dwelling as their main residence. | The dwelling is located on land that is less than two hectares. | Organisation A were listed as the executor for the deceased. | Organisation A was contacted on XX X 20XX by a legal representative acting on behalf of person C in relation to a potential claim on the estate for reimbursement of expenses and repairs undertaken on the dwelling. | Organisation A forwarded an email to the legal representative requesting further information in relation to the claim. No response was received in relation to this request. | The legal representative again contacted organisation A on X XX 20XX and advised that person C was having trouble with their email and advised that person C had now obtained a valuation and was prepared to make an offer to acquire the share of the deceased. | Organisation A commenced the formal administration of the estate on XX X 20XX. | Settlement occurred a short time later.