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Edited version of private advice
Authorisation Number: 1052294865233
Date of advice: 22 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 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 on XX XX 20XX.
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)
Spouse A passed away on XX XX 20XX and had continued to occupy the dwelling as their main residence.
The dwelling required some repairs and refurbishing as it has become damaged during the occupation of Spouse A.
The dwelling was occupied for a period of time by a child of the deceased who undertook some of the works personally.
The executors appointed a real estate agent to sell the dwelling on XX XX 20XX and after a short marketing period sold at auction on XX XX 20XX.
The purchaser requested a longer than standard settlement period.
Settlement took place a short time later.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195
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