Private ruling: Commissioner's discretion to extend the two year period for the capital gains tax exemption in relation to a deceased's dwelling
Date of advice: 13 January 2021
Published: March 2021
Ruling period: Year ended 30 June 2020
Date scheme commenced: 1 July 2019

Ruling: Q1: Will the Commissioner allow an extension of time under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) for you to dispose of your ownership interest in the dwelling? | 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 on xx xxx xxx. The deceased owned a property which they had acquired on xx xxx xx. The deceased had occupied the dwelling as their main residence since acquiring the property. The dwelling was sold by the estate more than two years after the death of the deceased. There were a few factors that contributed to the delay but the cause of most of the delay was the legal challenges to the validity of the will.

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