Private ruling: The Commissioner’s discretion to extend the two year time limit to dispose of a dwelling
Date of advice: 24 October 2018
Published: January 2019
Ruling period: Year ended 30 June 2018
Date scheme commenced: 1 July 2017

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 acquired a dwelling (The dwelling). The deceased passed away in 2014 (The deceased). The dwelling was the deceased’s main residence. The original executor was removed from the appointed position as a result of an application to the Supreme Court by the beneficiaries. As a result the Supreme Court appointed a new trustee in 2017. This caused a delay in the sale of the dwelling. The dwelling was placed on the market for sale. The dwelling was sold in 2017. Settlement occurred in 2017.

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 | Income Tax Assessment Act 1997 subsection 118-195(1)