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Edited version of private advice
Authorisation Number: 1052154554511
Date of advice: 9 August 2023
Ruling
Subject: Commissioner's discretion - deceased estate
Question
Will the Commissioner exercise the discretion under section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997) to allow an extension of time for you to dispose of your ownership interest in the dwelling acquired from a deceased estate 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 periods:
Year ended 30 June 2023
Year ending 30 June 2024
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
Your relative (the deceased) passed away.
You are the executor of the deceased's estate.
The deceased's estate included a dwelling (the property).
The deceased acquired the property after 20 September 1985.
The property was the main residence of the deceased just before they passed away and was not used to produce assessable income at that time.
The property is situated on less than two hectares of land.
Probate was granted less than four months after the deceased's date of death.
Your sibling lived in the property with the deceased at the time of the deceased's death, along with their partner and their children.
After the death of the deceased, you permitted your sibling, their partner, and their children to remain living at the property, as your sibling's partner had a terminal medical condition.
Your sibling's partner died one year after the death of the deceased.
You allowed your sibling and their children to remain living at the property for a further year after the death of your sibling's partner.
Your sibling and their children vacated the property shortly after two years had passed since the deceased's death.
The contract for sale of the property was executed shortly after your sibling vacated the property.
Settlement occurred shortly after execution of the contract for sale.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195
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