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Edited version of private advice
Authorisation Number: 1052392108142
Date of advice: 05 May 2025
Ruling
Subject: CGT - deceased estate
Question 1
Will the Commissioner exercise his discretion under section 118-195 of the Income Tax Assessment Act 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 1
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 ending XX XXX 20XX
The scheme commenced on:
XX XXX 20XX
Relevant facts and circumstances
The property is located at Address A.
The dwelling is situated on less than 2 hectares of land.
On 1XX XXX 19XX, Person A (the deceased) acquired the property as sole proprietor.
The property was the deceased's main residence until their passing.
In 19XX, the deceased married their spouse Person B, and the property became their main residence until their passing.
On XX XXX 20XX, the deceased passed away.
The deceased's will nominated their child, Person C as executor for the estate.
Clause X(x) of the will provided Person B a right to reside in the property for their lifetime. Clause X(x) prescribed that the property could not be sold without their written consent.
On XX XXX 20XX, Person C was granted probate as executor of the estate.
On XX XXX 20XX, Person C transferred the title of the property to their name as executor of the estate.
On XX XXX 20XX, Person B passed away.
Person B resided in the property until the time of their passing with only a short hospital stay of approximately 1 month prior to their death.
On XX XXX 20XX, Person C signed a listing agreement to sell the property.
On XX XXX 20XX, Person C signed a contract of sale.
On XX XXX 20XX, the property sale settled.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195
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