Private ruling: Commissioner's discretion to extend the two-year time limit to dispose of an inherited house
Date of advice: 9 June 2021
Published: August 2021
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner allow an extension of time to mid-20XX for you to dispose of your ownership interest in the house 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 passed away about two years ago. The title of the house passed to the deceased beneficiaries and joint executors in equal shares. The deceased acquired the house at some time before 1985. In 20XX, on advice from your real estate agent you spent considerable time and effort getting the house ready for sale, including; extensive repairs to the roof and guttering, replacement of damaged carpets and painting. In 20XX, COVID-19 border restrictions delayed progress on necessary house repairs and removals. You listed the house for sale as soon as the repairs were complete. Shortly after, a prospective buyer terminated the sale just before exchanging contacts. The house settled in mid-20XX (just outside the two year period).

Relevant legislative provisions: Income Tax Assessment Act 1997 S ubdivision 115-A | Income Tax Assessment Act 1997 section 102-20 | Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 section 118-120 | Income Tax Assessment Act 1997 section 118-130 | Income Tax Assessment Act 1997 section 118-195


This ruling applies for the following period: