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Edited version of private advice
Authorisation Number: 1051838938158
Date of advice: 17 May 2021
Ruling
Subject: CGT - deceased estate
Question
Will the Commissioner allow an extension of time to ## August 20## for you to dispose of your ownership interest in the dwelling and disregard the capital gain or loss you made on the disposal?
Answer
Yes. Having considered your circumstances and the relevant factors the Commissioner will allow an extension of time. Further information about the Commissioner's 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 July 20XX
Relevant facts and circumstances
The deceased passed away on ## June 20##.
The deceased purchased a ## hectare property pre capital gains tax (CGT).
The property was the deceased main residence up to his date of death and wasn't used for income producing purposes prior to the deceased passing or after.
The deceased left a will appointing an executor of the estate.
An Order to Administer was issued from the Supreme Court of Queensland on ## September 20##.
The executor took six months to complete the administration of the estate and the property was transferred to you as the beneficiary on ## January 20##.
The property was scattered with accumulated car bodies and had become run down requiring considerable repairs and maintenance in preparation for sale. No capital works were completed to the property prior to sale.
Your sibling was working out of state and found it difficult due to time, distance, and COVID-19 border restrictions, to assist with the large task of cleaning and preparing the property for sale.
Your child resided in the property for a period of time as caretaker.
The biggest delay in disposing of the property was COVID-19 which began in March 2020.
You listed the property with a real estate agent on ## May 20##.
There wasn't much interest shown in the property during COVID-19 as potential purchasers were weighing up the economic outlook which was very uncertain with the potential risk of loss of jobs or reduction of income. Further, they were considering the obvious risk of infection whilst conducting inspections.
COVID-19 also impacted potential purchasers that were interested as they could not actually travel to view the property. In particular, the purchaser was keen to sign a contract however the sale was delayed due to travel restrictions in place at the time due to COVID-19 impacts.
The contract of sale was signed, and settlement took place on the ## August 20##.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)
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