Private ruling: Income tax – capital gains tax
Date of advice: 28 March 2019
Published: May 2019
Ruling period: Year ending 30 June 2019
Date scheme commenced: 1 July 2016

Ruling: Q1: Will the Commissioner allow an extension of time to XX December 20XX 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 in 20XX. Probate was granted in 20XX, a delay in probate was due to the questioning of the deceased’s mental capacity at the time of the final will. A property was an asset of the estate; this was the deceased’s main residence up until the date of their death and has not been used for income producing purposes. The property was subject to a voluntary acquisition. You engaged a lawyer to act on your behalf for the negotiations of the sale of the property. During negotiations, the other parties’ valuer has been slow in contacting your valuer causing further delays to settlement. Your valuer became ill and you engage a new valuer. Negotiations recommenced between your valuer and the local council, this continued for a long period. The council then withdrew the compulsory acquisition. Council proceeded with compulsory acquisition under the hardship provision. Lengthy delays ensued due to prolonged council processing. You referred the matter of valuation to the Valuer General’s office and the property was gazetted. You received the compensation notice and were paid.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 section 118-195 | Income Tax Assessment Act 1997 subsection 118-195(1)