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Edited version of private advice
Authorisation Number: 1051525743710
Date of advice: 1 June 2019
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:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts
The deceased acquired a property after 20 September 1985 (the dwelling).
The deceased passed away in 20xx (the deceased).
The dwelling was the deceased's main residence.
The deceased was survived by a number of beneficiaries who both experienced illnesses after the death of the deceased. The illnesses and personal circumstances caused some delays in clearing and preparing the dwelling for sale.
The dwelling was subsequently prepared for sale and a contract entered into in 20xx.
Settlement for the sale occurred in 20xx, just outside the two year period.
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)