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Edited version of private advice
Authorisation Number: 1052254292107
Date of advice: 13 June 2024
Ruling
Subject: Commissioner's discretion - deceased estates
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 ruling applies for the following period:
Year ended 30 June 20xx
The scheme commenced on:
1 July 20xx
Relevant facts and circumstances
The deceased purchased the property on xxxx.
The property was the deceased primary residence until passing away on xxxx.
The deceased left the property to their children with a life tenancy to their spouse.
In xxxx 20xx the property was vacated and inspected. During the inspection, a significant leak was detected and required repairs to the bathroom and surrounding rooms.
The insurance company arranged for repairs of the bathroom fittings and plumbing, and replacement of carpet and flooring in adjacent rooms due to water damage was completed by xxxx 20xx.
The property was listed in xxxx and sold the following month.
The property was situated on less than two hectares of land.
The property was not used to produce assessable income.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195(1)
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