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Edited version of private advice
Authorisation Number: 1051813479083
Date of advice: 24 March 2021
Ruling
Subject: Commissioner's discretion to extend the two year period
Question 1
Does the application of section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997) exempt the capital gain on the sale by the Executor of the Estate of an ownership interest in the property?
Answer
Yes.
The property was the deceased's main residence and sold within two years of deceased's death. Further information about this exemption can be found by searching 'QC 52247' on ato.gov.au
Question 2
Will the Commissioner allow an extension of time under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) for the Legal Personal Representative to dispose of an ownership interest in the property?
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 periods:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The property was originally purchased as tenants in common in equal shares by both deceased in xx xxx xxxx.
The property was the main residence at all times of both parties until their respective dates of death.
First deceased passed intestate in xxxx. At the time of passing both of xxxx's sons resided at the property. This continued until the second son died intestate and then the sole occupant was the second deceased.
The property was less than XX hectares. The dwelling was never used for income producing purposes.
Second deceased was single with no dependants and passed on xx xxx xxxx. As deceased one had died intestate, xxxxx applied and was appointed Legal Personal Representative for the estate.
The property was listed for sale and a contract was entered into with settlement occurring on xx xxx xxxx.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)
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