| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 5010062000617
Date of advice: 11 September 2019
Ruling
Subject: Capital gains tax - deceased estate - Commissioner's discretion to extend the two year period - main residence exemption
Question
Will the Commissioner allow an extension of time to March 20XX for you to dispose of your ownership interest in the dwelling and disregard the capital gain you make on the disposal?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner will allow an extension of time. Further information about this discretion can be found by searching 'QC 52250' on ato.gov.au.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The deceased passed away in 20XX.
The deceased acquired a property with their spouse prior to 20 September 1985 and elected it as the principle place of residence before moving into an aged care facility.
The deceased obtained full ownership of the property in 20XX.
The deceased had a Will. The estate was left to the deceased's children, in equal shares.
Probate was granted in 20XX.
After the estate was finalised, Beneficiary 1 purchased Beneficiary 2's share due to financial difficulties and Beneficiary 3 purchased Beneficiary 4's share due to medical issues. Beneficiary 4 passed away soon after.
The property was sold in early 20XX to an unrelated third party.
Settlement occurred in early-mid 20XX.
The property did not produce any income from the date of death until the date of sale. It was mostly vacant but at times it was used as a family holiday home.
The sale of the property was delayed because of the untimely deaths (of the deceased and Beneficiary 4) and subsequent legal ramifications. This prevented the dwelling being sold within two years from the deceased's death.
The property was sold a short time outside the two year period.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-10,
Income Tax Assessment Act 1997 section 118-195
Income Tax Assessment Act 1997 subsection 118-195(1)
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
