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Edited version of private advice
Authorisation Number: 1051847052987
Date of advice: 2 June 2021
Ruling
Subject: Commissioner's discretion - extension of time to dispose of an inherited house
Question
Will the Commissioner allow an extension of time to late 20XX for you to dispose of your ownership interest in the house 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 ended 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
In 19XX, you and your sibling (the deceased) each acquired a 50% ownership interest in the house as tenants in common.
The house was the deceased's main residence until entering aged care in 20XX. The house was vacant and never rented, and the deceased chose to continue to treat the house as their main residence from this time until the time of their death.
In 20XX, the deceased passed away intestate. You inherited the deceased's 50% ownership interest in the house as their only next of kin. At the time you were using a financial administrator.
In late 20XX, your financial administrator advised they would investigate your capacity to administer the deceased's estate or to provide authority to State Trustees Ltd (STL). During their investigation, your financial administrator attempted to obtain the letter of administration of the deceased's estate. However, they were unsuccessful as they did not hold the proper authority.
In late 20XX, your financial administrator provided authority to STL to apply for the letter of administration of the deceased's estate.
In early 20XX, STL received a signed affidavit from your treating doctor confirming you do not have capacity to administer the deceased's estate nor could you authorise STL to administer the deceased's estate.
In early 20XX, STL advertises a Notice of Intention to administer the deceased's estate.
In mid-20XX, STL was granted the Letter of Administration of the deceased's estate and immediately took possession of the house and listed it for sale.
In mid-20XX, the house was sold.
In late 20XX, the house settled.
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 section 118-145
Income Tax Assessment Act 1997 section 118-195
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