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Edited version of private advice
Authorisation Number: 1052372850643
Date of advice: 4 April 2025
Ruling
Subject: CGT - 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 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
On DD MM 20XX, the deceased acquired a property with their former spouse.
On DD MM 20XX, the deceased acquired the remaining interest in the property from their former spouse.
On DD MM 20XX, the deceased passed away.
At the date of death, the deceased had an undated and unwitnessed informal will. The will did not appoint an executor and trustee of the estate.
At the date of death, the deceased owned the property.
The property was the main residence of the deceased just before they passed away and was not used to produce assessable income at that time.
The property was situated on less than two hectares of land.
The deceased had no ownership interest in any other dwelling during the period they owned the property.
On DD MM 20XX, probate was granted to the executor.
The executor of the estate has provided supporting information that the administration of the estate was delayed due to the complexities of the estate administration and personal sensitivities between MM 20XX and MM 20XX.
On DD MM 20XX, a contract for the sale of the property was entered into.
On DD MM 20XX, the property rental arrangement ceased.
On DD MM 20xX, settlement of the property occurred.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195
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