Will the Commissioner exercise the discretion under section 118-195 of ITAA 1997 to allow an extension of time for you to dispose of your inherited ownership interest in the dwelling and disregard the capital gain or capital loss you made on the disposal?
Yes. The commissioner exercises discretion and allows an extension of time for you to dispose of your inherited ownership interest in the dwelling and disregard the capital gain or capital loss for 1/3 share of the property. This ruling applies for the following period Year ended 30 June 20YY The scheme commenced on: DDMM20YY
The deceased passed away on DDMMYY The property was purchased in YYYY. The property is under 2 hectares. The property was the main residence of the deceased at the time of their death. On DDMMYY probate was granted. DDMMYY the title was transferred to the beneficiaries, who each got equal ownership interest The property was in a very poor condition and required considerable amount of work to bring it up to living standard. You have suggested that the house was unsafe for sale. On DDMMYY You had a major dispute and argument regarding the property with person B. The dispute you had with Person B over what to do with the property was settled by you purchasing person B's ownership interest in the property DDMMYY, this resulted in increasing your ownership interest in the property. The ownership interest purchased from Person B is no longer treated as inherited property DDMMYY Contract of sale was signed. DDMMYY settlement of the sale took place for person B's share of the property. They were outstanding financial matters pending attached to the property, this took several months to resolve due to ongoing issues.
On DDMMYY you began the search for a qualified tradesman to complete the required repairs to make the property habitable and ready for sale. The repairs on the property took longer than expected due to Store A ordering the incorrect materials to complete the repairs This resulted in the repairs to the property taking longer than expected. DDMMYY the property was placed on the market. DDMMYY an offer was made on the property. DDMMYY a formal offer was made and accepted DDMMYY the building inspection was completed. DDMMYY the contract was signed. DDMMYY the property sale was settled.
Section 118-195 of Income Tax Assessment Act 1997 Subsection 118-195(1) ITAA 1997.