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Edited version of private advice
Authorisation Number: 1051817891987
Date of advice: 18 March 2021
Ruling
Subject: CGT- deceased estate - two-year discretion
Question
Will the Commissioner allow an extension of time for the Estate to disregard the capital gain or capital loss made on the disposal of the deceased's main residence?
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 20XX
The scheme commences on:
1 June 20XX
Relevant facts and circumstances
The deceased was the owner of a dwelling.
The dwelling was the deceased's main residence until the date of death.
The deceased passed away in 20XX.
The deceased's relative was living at the dwelling at the time the deceased passed away.
Probate was granted in 20XX.
The deceased's relative occupied the dwelling for a period of time after the deceased passed away.
The executor sought legal advice to take possession of the dwelling which took time to resolve.
The Estate placed the dwelling on the market as soon as practicable and settlement occurred soon after.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 section 118-195
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