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Edited version of private advice
Authorisation Number: 1051530784347
Date of advice: 14 June 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 2019
The scheme commences on:
1 July 2018
Relevant facts
The deceased acquired a property (The dwelling).
The deceased passed away in 20xx (The deceased).
The dwelling was the deceased's main residence.
The deceased discussed their Will with their children prior to entering hospital.
The deceased's children had difficulty locating a Will after the death of the deceased.
The deceased's children eventually located a Will prepared in 19xx.
An application for probate was granted with the will annexed to 'A' in 20xx, approximately two years after the deceased's date of death.
The dwelling required some repairs prior to sale and due to the location of the dwelling and the beneficiaries preparing the dwelling for sale took longer than expected.
The dwelling was listed with a real estate agent around 20xx.
The location of the dwelling has experienced a downturn and the sale took longer than anticipated.
The administrator only received one offer to purchase the dwelling and this was accepted in 20xx.
Settlement occurred in 20xx, approximately three years after the deceased's date of death.
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)