Private ruling: CGT two year extension
Date of advice: 5 May 2020
Published: June 2020
Ruling period: Year ending 30 June 2020
Date scheme commenced: 1 July 2019

Ruling: Q1: Will the Commissioner allow an extension of time to early 20YY 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 died late 20XY. Probate was granted early 20XX. The assets of the estate included savings accounts and The Property. The Property was the main residence of the deceased. The executors engaged a real estate agent to sell the property early 20XX but were unable to sell it. A contract was signed late 20XZ with an extended settlement period. Prior to this contract there were no other offers on the property. The purchaser defaulted on the contract which further delayed settlement. A Notice to Complete was sent to the purchaser early 20YY and subsequently settlement occurred on early 20YY. During the whole period between the date of death and the death of settlement The Property was not leased out and remained vacant. While the property was for sale both of the executors suffer from severe health issues which affected their ability to attend to the estate. The health issues have been ongoing for several years.

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