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Edited version of private advice
Authorisation Number: 1051521352039
Date of advice: 23 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 ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The property was acquired by the deceased and was the main residence, never being used to produce assessable income.
There was a delay in granting probate in relation to the deceased's estate. Following probate the property was distributed to you.
Solicitors in another country were required to finalise distribution of the proceeds from the will.
The property required extensive maintenance due to white ants, the location of the property and drainage surrounding the property.
One of the beneficial owners was diagnosed with a health condition which led to more complications. This impacted the beneficiary's ability to prepare the property for sale on time.
The second beneficiary was made full time carer of the first beneficiary which impacted the ability to prepare the property for sale on time.
Sale and settlement for the sale of the property has now occurred.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)