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Edited version of private advice
Authorisation Number: 1051538797233
Date of advice: 04 July 2019
Ruling
Subject: Capital gains tax - deceased estate - Commissioner's discretion to extend the two year period - main residence exemption
Question
Will the Commissioner allow an extension of time for you to dispose of your ownership interest in the dwelling and disregard the capital gain you make on the disposal?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner will allow a short extension of time. Further information about this discretion can be found by searching 'QC 52250' on ato.gov.au
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The deceased purchased a dwelling prior to 20 September 1985 and resided in the dwelling as their main residence until they passed away. The dwelling was not used for income producing purposes.
The dwelling was located on land that is less than two hectares in size.
The deceased's spouse was granted a life interest in the dwelling. Beneficiaries were named with entitlement to the dwelling after the life tenant's interest ends.
Probate was subsequently granted.
The deceased's spouse passed away.
Shortly after, the beneficiaries instructed the trustee to sell the dwelling which was sold quickly; however, settlement occurred more than two years after the deceased's death.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subdivision 115-A
Income Tax Assessment Act 1997 Section 102-20
Income Tax Assessment Act 1997 Section 118-195
Income Tax Assessment Act 1997 Section 104-10
Income Tax Assessment Act 1997 Subsection 118-195(1)
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