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Edited version of private advice
Authorisation Number: 1052165054948
Date of advice: 7 September 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 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 periods:
Year ended XX/XX/20XX
Year ending XX/XX/20XX
The scheme commenced on:
XX/XX/20XX
Relevant facts and circumstances
The Deceased passed away on XX/XX/20XX leaving a will.
As at date of death the Deceased owned a dwelling at XXX, which was their main residence.
The Deceased appointed XXX as the Executor of their Will.
Probate was granted to the Executor on XX/XX20XX.
On XX/XX20XX, a contract was provided to the real estate agent to sell the property.
Due to the sensitive circumstances of the Deceased's death, and the necessary disclosure to potential buyers, this resulted in delays in finding a purchaser.
A contract was entered into to sell the Property on XX/XX/20XX, with settlement occurring on XX/XX/20XX, which was only 3 weeks outside of the 2-year discretion 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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