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Edited version of your written advice
Authorisation Number: 1051455710994
Date of advice: 17 December 2018
Ruling
Subject: Capital gains tax - deceased estate - two year discretion
Question
Will the Commissioner allow an extension of time 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 ended 30 June 2019.
The scheme commences on
1 July 2018.
Relevant facts
The deceased acquired a dwelling (the dwelling) after 20 September 1985.
The deceased passed away after a number of years.
The dwelling had been the deceased’s main residence prior to passing away.
Under the Will of the deceased, the deceased’s spouse, (‘A’), was granted a life interest. The remainder beneficiaries are the deceased children.
‘A’ and the deceased’s children entered into a family deed to vary the terms of the deceased’s Will with the result being that the trustees transferring an estate of freehold for life to ‘A’ and an estate in fee simple in remainder expectant to the deceased’s children.
‘A’ continued to reside in the dwelling until they passed away in 201X.
The dwelling was prepared for sale.
Settlement of the contract for sale occurred in 201X.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 subsection 118-130(3)
Income Tax Assessment Act 1997 section 118-195