Private ruling: Income tax - capital gains tax - Commissioner's discretion to extend the two year period
Date of advice: 27 July 2020
Published: August 2020
Ruling period: Year ended 30 June 2018
Date scheme commenced: 1 July 2017

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. The deceased was the owner of a property. The property was the deceased's main residence at time of death and the land size is less than 2 hectares. The property had been purchased prior to 1985. The deceased passed away with no spouse or any children. The Last will and Testament appointed an individual as the sole Executor and Trustee who applied for Probate. Difficulties arose around the granting of probate. The property remained unoccupied. Due to the difficulties surrounding the Estate eventually Letters of Administration were granted to a creditor of the Estate. Following this xxxx immediately commenced the sale process. A contract of sale for the property was signed on xx xxx xxxx with settlement occurring on xx xxx xxxx

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