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Edited version of private advice
Authorisation Number: 1051555437356
Date of advice: 25 July 2019
Ruling
Subject: Capital gains tax - deceased estate - 2 year discretion
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 an 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(s)
Year ended 30 June 20XX
The scheme commences on
1 July 20XX
Relevant facts
The deceased acquired a dwelling (the dwelling).
The deceased passed away in 20xx (the deceased).
The dwelling was the deceased's main residence.
The deceased left a number of wills prepared at different times and with different executors named.
A dispute arose in relation to the administration of the estate and the validity of the wills. Mediation was required and this caused delays in obtaining a grant of probate.
The dispute was resolved and an administrator was appointed in 20xx.
Further delays were experienced in selling the dwelling as the tenant of an adjoining property also owned by the deceased claimed to have a first right of refusal to purchase the dwelling. Delays were experienced in finalising this claim.
A caveat was lodged in 20xx on the title to the dwelling by one of the named executors. This was eventually removed in 20xx.
The dwelling was listed with a real estate in 20xx.
A contract for sale was entered into in 20xx.
Settlement will occur in 20xx.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 subsection 118-130(3)
Income Tax Assessment Act 1997 section 118-195
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