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Edited version of your written advice
Authorisation Number: 1051463555772
Date of advice: 6 December 2018
Ruling
Subject: Capital gains tax - deceased estate - 2 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(s)
Year ended 30 June 20XX
The scheme commences on
1 July 20XX
Relevant facts
The deceased acquired a dwelling after 20 September 1985.
The deceased passed away after a period of time.
The dwelling had been the deceased’s main residence prior to passing away.
The dwelling has not been used to produce income.
The title to the dwelling was transferred to the trustees after a period of time.
Under the will of the deceased, the deceased’s child, (‘A’), was granted a life interest to occupy the deceased’s dwelling provided that they satisfied a number of conditions.
One of the conditions was that ‘A’ pay $1 per year to the trustee if demanded by the trustee to lease the dwelling.
‘A’ resided in the dwelling with the deceased prior to their death and continued to reside in the dwelling.
‘A’ passed away in 20XX.
The dwelling was prepared for sale and a contract for sale was entered into in 20XX.
Settlement took place a short time later in 20XX.
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
Income Tax Assessment Act 1997 subsection 118-195(1)