Private ruling: The commissioner’s discretion to extend the two year time limit to dispose of a dwelling
Date of advice: 14 November 2018
Published: March 2019
Ruling period: Year ended 30 June 2019
Date scheme commenced: 1 July 2018

Ruling: Q1: Will the Commissioner allow an extension of time to 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 201X (The deceased). The deceased’s Will stated that the dwelling be transferred to a charitable trust. The dwelling was the deceased’s main residence. The dwelling was not used for the purpose of producing assessable income. The dwelling required some repairs prior to sale. The dwelling was vacant for a period in 2016. The deceased’s Will also contained a clause that an individual could occupy the dwelling for one to two years. The deceased’s dwelling contained a significant amount of art work and collectables which were required to be catalogued prior to the dwelling being prepared for sale. A neighbouring property submitted plans to council for redevelopment. The executors lodged an objection to the plans. This caused delays in preparing the property for sale. The bequest to an Art Gallery was unable to be transferred as the Gallery was undergoing renovations, resulting in limited storage space. The dwelling was prepared for sale and listed for sale by auction in 201Y. Settlement will occur X months after auction.

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)