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Edited version of private advice
Authorisation Number: 1051817649592
Date of advice: 22 March 2021
Ruling
Subject: Deceased Estate - extension to the two-year period
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 periods:
Year ended 30 June 2012
Year ended 30 June 2013
Year ended 30 June 2014
Year ended 30 June 2015
Year ended 30 June 2016
Year ended 30 June 2017
Year ended 30 June 2018
Year ended 30 June 2019
Year ended 30 June 2020
The scheme commences on:
1 July 2011
Relevant facts and circumstances
The deceased acquired the property pre-CGT.
The deceased died during the year ended 30 June 2012.
The deceased occupied the property as their main residence from purchase until their death.
Probate of the Will and Codicil of the deceased was granted to two trustees during the year ended 30 June 2012. One of the trustees was the deceased's sibling.
During the year ended 30 June 20212 the trustees were registered on the title to the property as Legal Personal Representatives of the deceased.
The sibling of the deceased was living with the deceased at the time of their death.
Pursuant to the Will of the deceased, the sibling has a life interest in the property.
The sibling was occupying the property as their main residence from the date of the deceased's death.
The Will stipulated that funds were to be set aside for payment of rates, taxes and maintenance with respect to the property during the sibling's lifetime.
The property has not been used to generate income at any time since the death of the deceased.
During the year ended 30 June 2020, the sibling moved into an aged care facility and the property was sold.
A new trustee replaced the sibling as trustee of the estate during the year ended 30 June 2020 after the sibling lost the capacity to remain acting as trustee.
A contract for the sale of the property was signed during the year ended 30 June 2020.
Settlement of the property occurred three months later.
Between the sibling moving into aged care and the sale of the property, there were no refurbishments, renovations or significant works carried out on the property.
At no point has the property been used to generate assessable income. It has not been used as a rental property or a business property.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)
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