Private ruling: Commissioner's discretion to extend the two-year time limit to dispose of an inherited house
Date of advice: 20 July 2021
Published: September 2021
Ruling period: Year ended 30 June 2021
Date scheme commenced: 1 July 2020

Ruling: Q1: Will the Commissioner allow an extension of time to mid-2021 for you to dispose of your ownership interest in the house 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: At some time before 1985, the deceased bought the house. In late 20XX, the deceased passed away intestate. Shortly after, the deceased's sibling provided instructions to their lawyer to administer the deceased's estate. Soon after, their lawyer also received a letter from the lawyer of the children of the deceased's other sibling indicating that they may apply for a Grant of Probate. In early 20YY, the lawyer for the deceased's sibling advised the lawyer for the children of the deceased's other sibling that the deceased's sibling objected to them obtaining a Grant of Probate. In late 20YY, the lawyer for the children of the deceased's other sibling advertised their intention to obtain a Grant of Probate. Shortly after, the lawyer of the deceased's sibling lodged a caveat with the Probate Office. In late 20ZZ, all parties signed a Deed of Family Arrangement agreeing to the deceased's sibling making an application for a Grant of Letters of Administration of the deceased's estate. In early 20XY, the deceased's sibling was granted Letters of Administration of the deceased's estate. Shortly after, the house was listed for sale and sold quickly. In mid-20XY, the house settled. (Less than three years after the deceased passed away).

Relevant legislative provisions: Income Tax Assessment Act 1997 subdivision 115-A | Income Tax Assessment Act 1997 section 102-20 | Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 section 118-120 | Income Tax Assessment Act 1997 section 118-130 | Income Tax Assessment Act 1997 section 118-195


This ruling applies for the following period: