Edited version of private advice

Authorisation Number: 1052132894270

Date of advice: 6 July 2023

Ruling

Subject:CGT - deceased estate

Question

Will the Commissioner allow an extension of time for you to dispose of your ownership interest

in the dwelling located at the Property 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 ato.gov.au for 'QC 66057'.

This ruling applies for the following period

Year ending 30 June 20XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

The Deceased passed away on DD MM 20XX.

The Deceased had sole ownership of the Property. They acquired a 50% legal interest in the Property before 20 September 1985 and the remaining 50% legal interest in the Property after 20 September 1985.

The Property was the main residence of the Deceased and was not being used to produce income at the time of death.

The Property was never used for income producing purposes.

The Property was situated on less than 2 hectares of land.

Probate for the Deceased Estate was granted on DD MM 20XX.

The Deceased's Will listed three beneficiaries, (The Beneficiaries) who were also appointed co executors (The Executors) of the Deceased Estate.

Person A was granted a right to reside at the Property for "their lifetime or until they remarry or vacate the property permanently" under the terms of the Will provided they were residing at the Property at the Deceased's date of death.

Person A was residing at the Property at the Deceased's date of death.

Person A continued to reside at the property until on or around MM 20XX, when due to failing health, they moved into residential aged care. This move was initially on a temporary basis. At this time, extensive clean up works were undertaken by the Executor(s) both internally and externally to the dwelling at the Property to facilitate Person A's return to the Property. However due to Person A's failing health, they were unable to return to the Property and they remained in residential aged care.

On or around mid MM 20XX, Person A vacated the Property permanently.

Following Person A vacating the Property permanently, the Executors of the Deceased Estate took possession of the Property to arrange for its sale.

On or around MM/MM 20XX, the Executors of the Deceased Estate made initial enquiries with selling agents who advised the Property required further tidying and clean-up prior to it being ready to be listed for sale. The property was in a dilapidated state and unsafe to allow real estate agents or prospective buyers to view the Property.

In early MM 20XX, following further clean-up works, an estate agent was invited to again view the Property and on DD MM 20XX they were engaged to sell the property.

On DD MM20XX, the Property was passed in at auction.

The Property was sold on DD MM 20XX with settlement occurring on DD MM 20XX.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195

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