Private ruling: Capital gains tax- Commissioner’s discretion to dispose of dwelling outside of 2 year period
Date of advice: 19 July 2018
Published: September 2018
Ruling period: Year ended 30 June XXXX
Date scheme commenced: 1 July XXXX

Ruling: Q1: Will the Commissioner exercise his discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) in relation to the dwelling on the property and allow an extension of time until XX/XX/XXXX | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner is able to apply his discretion under subsection 118-195(1) of the ITAA 1997 and allow an extension of time until XX/XX/XXXX. Further information on the relevant factors and inheriting a dwelling generally can be found on our website ato.gov.au and entering Quick Code QC52250 into the search bar at the top right of the page.

Relevant facts and circumstances: The deceased acquired their main residence (the property) pre-CGT. The deceased passed away on XX/XX/XXXX. The will of the deceased provided a right to occupy the property to Individual A. Individual A was residing in the property prior to the death of the deceased and continued to live in the property as his principal place of residence. Individual A did not own any other property. Individual A relinquished his right to reside in the property in XX/XXXX due to health reasons. The executor took action over the next few months to have the property ready for sale and shortly after the property was sold with settlement taking place a couple of months later.

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