Private ruling: The Commissioner’s discretion to extend the two year time limit to dispose of a dwelling
Date of advice: 19 December 2018
Published: April 2019
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX.

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 legislative provisions: Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 subsection 118-130(3) | Income Tax Assessment Act 1997 section 118-195


Relevant facts: The deceased acquired a dwelling prior to 20 September 1985 (the property). | The deceased became the sole owner of the property prior to 20 September 1985 after their then spouse passed away. | The property was the main residence up until xxx when the land was subdivided and a new dwelling was constructed at the rear of the block. | The newly constructed dwelling is identified as ‘X’ and became the main residence after construction (new dwelling). The existing dwelling remained ‘Y’ (existing dwelling). | The existing dwelling is a pre-CGT asset. | The existing dwelling was occupied by (‘A’) who is a step child of the deceased, as a family arrangement not for income producing purposes. | The deceased passed away in 20XX. | The deceased’s will included a life tenancy clause which permitted ‘A’ to reside in the existing dwelling. | ‘A’ continued to reside in the existing dwelling until their death in 20XX. | The existing dwelling continued to be occupied by ‘B’, ‘A’s child, for a period of time in 20XX. | The dwelling was prepared for sale and a real estate agent was appointed for sale in 20XX. | The dwelling was listed for sale by auction in 20XX. | Settlement occurred in 20XX.