Private ruling: the Commissioner's discretion to extend the two-year time limit to dispose of a dwelling
Date of advice: 15 June 2020
Published: June 2020
Ruling period: Ruling end date XX XXXX 2019.
Date scheme commenced: XX XXXX 2018.

Ruling: Q1: Will the Commissioner exercise discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and allow an extension of time to the two-year period? | A1: Yes. Having considered the relevant facts, the Commissioner will apply his discretion under subsection 118-195(1) of the ITAA 1997 and allow an extension to the two-year time limit until the settlement date.

Relevant facts and circumstances: The deceased died. Probate was granted. The will included the dwelling. This was the deceased's main residence and was not used for an income producing purpose. The will granted the deceased's relative a life interest in the dwelling. The relative lived there with the deceased's children. The relative lived there until their own death. After this, the deceased's children continued to live in the dwelling to care for one of the other children. The property was put on the market. There were difficulties selling the property. The dwelling was sold. Settlement occurred. The delay was the result of the life interest, a child's health issues and a difficulty selling the property.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 118-195(1)