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Edited version of private advice
Authorisation Number: 1052121087536
Date of advice: 25 May 2023
Ruling
Subject: Commissioner's discretion - deceased estate
Question
Will the Commissioner exercise the discretion under section 118-195 of Income Tax Assessment Act 1997 to allow an extension of time for you to dispose of your ownership interest in the dwelling and disregard the capital gain or capital 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 ato.gov.au for 'QC 66057'.
This ruling applies for the following period:
Year ending 30 June 202X
The scheme commenced on:
1 July 202X
Relevant facts and circumstances
The deceased passed away on XX/XX/20XX leaving a will (the Will).
As at the date of death, the Deceased owned a property at XXX (the Property) which was their main residence.
The deceased appointed XXX as Executors of the Will (the Executors).
The deceased was a hoarder and had accumulated a large number of possessions over their lifetime that were stored in their house, multiple sheds and multiple shipping containers on the Property.
Given this, the executors and beneficiaries unpacked and sold the deceased's possessions in smaller lots which took approximately 18 months to complete and get the property into a marketable state.
A first contract was signed on XX/XX/20XX, within the 2-year period, which subsequently fell through.
On XX/XX/20XX a second unconditional contract was signed, also within the 2-year period, and the Property was settled a few weeks outside of the 2-year period.
At all material times, the Property was not used for producing assessable income.
The property is less than 2 hectares in size.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195
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