Private ruling: Capital gains tax
Date of advice: 17 November 2021
Published: February 2022
Ruling period: Year ended 30 June 2021
Date scheme commenced: 1 July 2020

Ruling: Q1: Will the Commissioner exercise his discretion under section 118-195 of the Income Tax Assessment Act 1997 to extend the two-year period to dispose of the dwelling? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner will extend the two-year period to dispose of the dwelling to the relevant date. Further information about this discretion can be found by searching 'QC 66057' on ato.gov.au

Relevant facts and circumstances: The deceased passed away several years ago. The property was purchased a few decades ago by the deceased. The property was the deceased's main residence for the whole of his ownership period. The property was never used to produce income. The property was less than 2 hectares in size. Probate was granted several months after the deceased passed away. The property was placed on the market a few months later and took longer than the 2 year time period to sell due to the location, small population and the market at the time. Everything was done to sell the property within the 2 year time period.

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