Private ruling: Capital gains tax two year exemption
Date of advice: 14 June 2019
Published: August 2019
Ruling period: Year ending 30 June 2019
Date scheme commenced: 1 July 2018

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 executed their last Will and Testament. The deceased passed away some time later. Individual Y resided in the property with the deceased. You disputed the validity of the Will and the deceased testamentary capacity which delayed the application for the Grant of Probate. You were granted Probate of the deceased's Will. A purchaser was found however Individual Y refused to vacate the premises. Individual Y passed away a short time later. You entered into a contract for the sale of the property about two years after the deceased's death. After Individual Y passed away the property was left in a poor condition and consequently in after the contract was signed you were issued with a notice that the property was in breach of the Local Nuisance and Litter Control Act 2016 and were required to improve the state of the property in order to meet the Council's requirements. Due to the condition of the property, you extended the date of settlement and reduced the purchase price. The settlement date was later extended again before an addendum to the contract changed the due date to the final settlement date. You worked on the property during the period between contract initially being signed and settlement to bring it to a condition that meet Council requirements and allow the property to settle.

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