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Edited version of private advice
Authorisation Number: 1052273491904
Date of advice: 29 July 2024
Ruling
Subject: CGT - 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 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 ending 30 June 20xx
The scheme commenced on:
1 July 20xx
Relevant facts
The deceased passed away after 20 September 1985.
As at the date of death, the deceased owned a dwelling (the dwelling).
The dwelling was the main residence of the deceased and was never used to produce assessable income.
The land area is less than 2 hectares in size.
The deceased provided a life interest in the dwelling to their spouse. (Spouse A)
On DD April 20XX a transmission application was lodged to transfer the dwelling into the names of the executors (in their capacity as executors and Trustees of the deceased's estate) as the registered proprietors of the land, subject to spouse A's right to occupy the dwelling.
Spouse A passed away on XX XX 20XX and had continued to occupy the dwelling as their main residence.
The executors appointed a real estate agent to sell the dwelling on XX XX 20XX.
The dwelling was prepared for sale and was listed for sale a short time later.
An auction was held on XX XX 20XX however was passed in and not sold.
The sale of the dwelling continued to be actively managed and a contract for the sale was entered into by the executors on XX XX 20XX.
Settlement occurred on XX XX 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195
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