Private ruling: Commissioner's discretion to extend the two year time limit to dispose of a dwelling
Date of advice: 23 December 2020
Published: March 2021
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

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 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)


Relevant facts: The deceased acquired a dwelling. (The dwelling). | The deceased passed away in 20XX. (The deceased) | The dwelling had been the deceased's main residence prior to passing away. | The will of the deceased provided a life interest in the dwelling to their spouse (A) | The dwelling was occupied by A until they passed away in 20XX. | A trustee of the estate of A who was also a child of the deceased, passed away a short period of time afterwards. | This created a more complex administration as the remaining family members where required to effectively administer numerous estates concurrently. New trustees were required to be appointed. | There were numerous properties within the estates to administer and this caused some delays in administering the sale of the dwelling. | The trustees appointed legal representatives to assist and during the administration process a number of separate legal representatives were involved and this caused some delays. | The dwelling was vacant from the date of death of A and as a result some repairs were required to be undertaken. | The trustees were required to raise the funds personally to complete the repairs and ready the dwelling for sale. | The dwelling was placed on the market in 20XX and at this time an error was noted on the title to the dwelling. This caused delays whilst this issue was resolved. | COVID-19 also impacted on the trustees ability to market and sell the dwelling. | A contract was entered into in 20XX. | Settlement occurred a short time later.