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Edited version of private advice
Authorisation Number: 1051523447575
Date of advice: 18 June 2019
Ruling
Subject: Capital gains tax deceased estate
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 deceased died some years ago, intestate.
The property was purchased by the deceased after the introduction of capital gains tax.
The deceased and the defacto partner and child resided at the property from before the death of the deceased until the sale of the property. The property was the deceased's main residence although the deceased often rendered assistance to the parent in a nearby property.
Other relatives made claims against the estate which delayed the sale of the property. Once these claims were settled the property was sold. In the period after the death of the owner the property was not rented.
After settlement of these competing legal claims, a sale of the property was then organised. Settlement then took place within a year of the finalisation of these competing claims which acted as impediments to the sale.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subsection 118-195(1).