Private ruling: Commissioner's discretion to allow more time to dispose of a dwelling
Date of advice: 1 April 2021
Published: June 2021
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner allow an extension of time for you to dispose of your ownership interest in the dwelling and disregard the capital gain or loss you made on the disposal? | A1: Yes. Having considered your circumstances and the relevant factors the Commissioner will allow an extension of time. Further information about the Commissioner's discretion can be found by searching 'QC 52250' on ato.gov.au

Relevant facts and circumstances: The deceased passed away. The deceased left a will. Probate was granted to the executor. The deceased purchased a property post capital gains tax (CGT). The property is over X hectares. The deceased sold a 50% share of the property as tenants in common. The deceased lived in the property as their main residence up to date of death. The tenant in common utilised the property in a business. There were delays in disposing of the property due to complexities with the tenant in common. The tenant in common had two different law firms acting on their behalf. There was a dispute between the estate and tenant in common over certain fixtures and chattels on the property, an agreement needed to be reached as to which of those fixtures/chattels remain on the property as part of the sale. A real estate agent was engaged. Negotiations occurred with the tenant in common to sell both interests in the property together. Over time the sale price was reduced. No capital works were completed on the property after the deceased passing. The property sold with settlement occurring.

Relevant legislative provisions: Income Tax Assessment Act 1 997 subsection 118-195(1)