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Edited version of private advice
Authorisation Number: 1051841646803
Date of advice: 20 May 2021
Ruling
Subject: CGT - deceased estate
Question
Is any capital gain or capital loss disregarded on the sale disregarded?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner confirms that settlement occurred in accordance with subsection 118-130(3). Accordingly any capital gain or capital loss is disregarded.
This ruling applies for the following period
Year ended 30 June 20XX
The scheme commences on
1 July 20XX
Relevant facts
The deceased acquired a dwelling (the dwelling).
The dwelling is located on land that is less than two hectares.
The dwelling was the deceased's main residence when they passed away in 20xx.
COVID-19 has impacted on your ability to prepare the dwelling for sale.
A buyer approached you about purchasing the property however they were having difficulty selling their own property. You as trustee agreed to a short period of vendor finance in order to facilitate the sale of the dwelling.
A mortgage was registered on the property and was discharged in 20xx.
A contract for the sale was entered into in 20xx.
Settlement occurred within 2 years of the death of the deceased.
Relevant legislative provisions
Income Tax Assessment Act 1997 subdivision 115-A
Income Tax Assessment Act 1997 section 102-20
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 section 118-120
Income Tax Assessment Act 1997 section 118-130
Income Tax Assessment Act 1997 subsection 118-130(3)
Income Tax Assessment Act 1997 section 118-195
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