Private ruling: Extend the two-year time limit to dispose of a deceased's dwelling
Date of advice: 24 November 2020
Published: January 2021
Ruling period: Year ended 30 June 20XX
Date scheme commenced: XX XXXX 20XX

Ruling: Q1: Will the Commissioner allow an extension of time to XX XXXX 20XX 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: Individual A passed away on XX XXXX 20XX. Individual A had a property (the Property), which they acquired before XX September 19XX and was their main residence. The Property is under XX hectares in size. The Property has been vacant since Individual A's death, and no income has been generated from the Property. There is a Public Acquisition Overlay (PAO) on this property, by the XXXX State Government. The estate of Individual A actively tried to sell this property during the two-year period but due to the existence of the PAO had not been able to secure a sale within that period. The estate has now reached an agreement with the relevant city council for this entity to purchase the Property. A contract for the sale of the Property was signed a couple of months after the expiry of the two-year period. The settlement on this property will be completed by XX XXXX 20XX.

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