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Edited version of private advice

Authorisation Number: 1051808697039

Date of advice: 16 April 2021

Ruling

Subject: Capital gains tax - deceased estate

Question

Will the Commissioner allow an extension of time to late 20XX 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:

Year ended 30 June 2021

The scheme commences on:

1 July 2020

Relevant facts and circumstances

The deceased passed away on late 20YY.

Probate was granted on early 20YX.

The property was the deceased's main residence.

The property is less than 2 hectares in size.

Based on the advice received in late 20YY from a real estate agent and a builder, repairs and maintenance was carried out.

The work carried out at the property included:

•         house stump replacement;

•         repair of termite damage;

•         roof and gutter repairs / replacement;

•         concreting of garage and pathway (and associated excavation works);

•         garage renovation (including floor resurfacing);

•         repair of external stairs, external doors and walls;

•         carpentry;

•         roof repointing;

•         internal and external painting;

•         new kitchen installation;

•         removal of floors tiles;

•         polishing of floors;

•         yard work and gardening; and

•         general clean-up.

The renovations were completed in late 20YX.

The property was listed for sale in late 20YX.

In early 20XY the estates bank account was frozen due to a dispute between the Executors.

In early 20XY the property was taken off the market due to the ongoing dispute.

The property remained off the market until an agreement was reached on mid 20XX to list the property for sale again.

The property was sold and subsequently settled on late 20XX.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195

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