Private ruling: Capital gains tax - extensions to the 2-year ownership period
Date of advice: 7 September 2022
Published: November 2022
Ruling period: Year ended 30 June 2022
Date scheme commenced: 1 July 2021

Ruling: Q1: Will the Commissioner exercise the discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 to extend the two-year period for you to dispose of your ownership interest in a dwelling (the property)? | A1: Yes. Having considered your circumstances and the relevant factors set out in the Practical Compliance Guideline PCG 2019/5, the Commissioner will exercise the discretion to extend the two-year period for you to dispose of your ownership interest in the property. Further information about the Commissioner's discretion can be found by searching ato.gov.au for 'QC 66057'

Relevant facts and circumstances: The deceased passed away in 2020 leaving a Will. The deceased acquired the property after 20 September 1985. The property was the main residence of the deceased just before their death and was not used to produce assessable income. The property was situated on less than two hectares of land. Probate was granted to the Executors three months after the date of death of the deceased. The property remained vacant from the deceased's death until it was sold. Due to the Covid-19 State lockdowns for the most of 2020 and 2021 income years, the Executors were unable to travel to the property and prepare it for the sale. The Executors organised for the sale of the property when the State lockdowns finished. The property was contracted for sale and the settlement occurred in June 2022.

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