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Edited version of private advice
Authorisation Number: 1051519598027
Date of advice: 18 May 2019
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 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The property was purchased prior to 20 September 1985.
The property was used for income producing activities the whole time it was owned and after the deceased's passing.
The deceased's child and three grandchildren were made executors to the deceased's estate.
The will stipulated that each executor must be in a complete agreement on any decisions for the trust and any documents required all executors' signatures.
One of the executors was diagnosed with a serious medical condition.
The death of the deceased's spouse which left another estate with three executors (the grandchildren) to be prepared for probate.
A beneficiary was diagnosed with a serious medical condition passed away.
Probate finalised mth/20XX. The property was sold mth/20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)