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Edited version of private advice
Authorisation Number: 1052286057134
Date of advice: 6 August 2024
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 (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 ruling applies for the following period:
30 June 20XX
The scheme commenced on:
DD MM 20XX
Relevant facts and circumstances
The deceased passed away on DD MM 20XX.
At the date of death, the deceased owned a property.
The deceased acquired the property prior to 20 September 1985.
The property was the main residence of the deceased just before they passed away and was not used to produce assessable income.
The property was situated on less than two hectares of land.
The property was also the main residence of the deceased's child since birth.
The deceased had a will dated DD MM 20XX which appointed an executor and trustee of the estate.
There were several beneficiaries of the deceased's will.
Probate was granted on 11 February 2020.
Between DD MM 20XX to DD MM 20XX, several covid restrictions and lockdowns had been issued in your state.
The reasons why the property was not sold within the 2-year time period was due to the executor experiencing both mental and health problems along with Covid.
The property needed to be prepared for sale and was done as soon as the executor was physically and mentally able to.
The deceased's child moved out of the property shortly after it was listed for sale.
You entered into a contract to sell the property on DD MM 20XX with settlement occurring on DD MM 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195
Income Tax Assessment Act 1997 section 104-10
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