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Edited version of private advice
Authorisation number: 1052217435551
Date of advice: 6 February 2024
Ruling
Subject: Deceased estates 2-year discretion
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 acquired 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 private ruling applies for the following period:
Year ended 30 June 20xx
The scheme commenced on:
01 July 20xx
Relevant facts and circumstances
The deceased purchased the property in 19xx.
The deceased lived in the property as his main residence until they temporarily swapped houses with a family member for a short time. The deceased then moved into a townhouse owned by another family member until they passed away.
The date of death was during the Covid 19 epidemic and relevant lockdowns.
The deceased's personal belongings remained at the property until the property settlement process made it practicable to remove.
There was a six-month delay in obtaining signatures for Titles Office transmission due to an executor living overseas.
There were difficulties in obtaining contractors and materials during the Covid 19 restriction period to carry out the necessary general maintenance to bring the property to be presentable for sale.
Family members resided in the deceased's property until settlement date.
Services such as gas and power were still connected and held by the family until settlement date.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195(1)
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