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Edited version of private advice
Authorisation Number: 1051816695070
Date of advice: 7 April 2021
Ruling
Subject: CGT deceased estate
Question
Will the Commissioner allow an extension of time to XX XXXX 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 ending 30 June 20XX
The scheme commences on:
XX XXXX 20XX
Relevant facts and circumstances
The Deceased passed away on XX XXXX 20XX.
The Deceased was the sole owner of the Property, which was their main residence until their death.
The Executor was the sole executor of the estate for the Deceased, a second executor formally withdrew due to residing overseas.
The Executor's spouse suffered a heart attack in XXXX 20XX.
The Executor's uncle passed away in XXXX 20XX, and the Executor was required to assist with clearing out the property of this individual.
Probate was granted XX XXXX 20XX.
Due to complexity of the will involving a beneficiary whose finances were in control by the state public trustee, administration of the will was being liaised between lawyers for the estate and this public trustee. A letter was received from Crown Solicitors office on XX XXXX 20XX which clarified how to set up the trust for this beneficiary.
Due to the condition of the Property, and due to location of the Property in relation to the Executor's location, it took the Executor twelve months to clear out property to be ready to put on the market.
XXXX 20XX in preparation for putting the Property on the market the Executor attempted to acquire property insurance (including public liability insurance), but this was not granted due to hazards which needed to be addressed to be eligible for insurance.
Works were undertaken in XXXX 20XX regarding rectification works to obtain insurance.
XX XXXX 20XX the Executor's wife was diagnosed with an illness.
XX XXXX 20XX - XX XXXX 20XX interviews were conducted to find a sales agent to sell the Property.
XX XXXX 20XX a real estate agent was engaged and the Property was put on the market. An offer fell through and as a result one of the beneficiaries purchased remaining ownership interests in the property.
XX XXXX 20XX an independent valuation of the Property was carried out.
XX XXXX 20XX settlement for sale of the Property.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195
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