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Edited version of private advice
Authorisation Number: 1052216493011
Date of advice: 9 February 2024
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 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 period:
Year ended 30 June 20XX
The scheme commenced on:
XX XX 20XX
Relevant facts and circumstances
The deceased owned 50% of the property when they died, and at that time it was their main residence and not being used to produce income.
A life interest was provided in the deceased's will and codicil to the will which prevented the property from being sold until the life tenant passed away. The life tenant owned the other 50% interest in the property.
The life tenant lived in the property from the deceased's death until their own death. It was not used to produce income during this period.
In the three months after the life tenant's death the property was prepared for sale (including some minor repairs) and placed in the hands of agents.
Settlement on the sale took place approximately six months after the death of the life tenant.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195
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