| Disclaimer You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1052007592229
Date of advice: 15 July 2022
Ruling
Subject: Commissioner's discretion - deceased estates
Question
Will the Commissioner grant an extension to the 2-year period until May 20XX to dispose of the property you inherited under your father's will?
Answer
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 ato.gov.au for 'QC 66057'.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
Your parents owned a property (the Property). They retired to the town where the Property was located many years ago have and lived there from then onwards.
Parent A passed away several years ago. Parent B continued to live at the Property until they passed away in 20XX.
A few weeks after Parent B died, COVID restrictions were imposed.
Probate was granted approximately 8 months after the date of death. Granting of Probate was delayed as the solicitors were located in another state.
The transfer of the Property into your and your sibling's names was registered the following year.
During this time, the Property remained empty. The gardens became overgrown, and maintenance of the Property was restricted as access to trades people was difficult.
In addition, you live in a city where for a period of several months you were in lockdown and unable to travel out of your local government area.
You and your sibling, along with some other family members, planned to travel to the Property around the Christmas period the year following the date of death. One of your family members contracted an illness once at the Property at this time. This meant that no other family members could come to assist with the clean-up and preparation of the house for sale at this time.
With the easing of COVID restrictions, you were able to commence preparing the Property for sale shortly after the Christmas period. The Property was placed on the market and sold shortly afterwards.
Settlement occurred several weeks later.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
