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Edited version of private advice
Authorisation Number: 1051556059572
Date of advice: 29 July 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 2020.
The scheme commences on
1 July 2019.
Relevant facts
The deceased acquired a dwelling (the dwelling).
The deceased passed away in 20xx.
The dwelling was the deceased's main residence.
You and your sibling were listed as executors.
You obtained probate and title to the dwelling was transferred to you and your sibling as beneficiaries.
You and your sibling reside a significant distance from the dwelling which made attending to the property difficult and caused some delays in progressing the sale.
Your sibling also experienced some illness which resulted in some further delays.
The dwelling was prepared for sale and listed with a real estate agent in 20xx.
A contract for the sale of the dwelling was entered into in 20xx.
The purchaser requested a 90 day settlement.
Settlement was scheduled for 20xx however the purchaser was unable to complete the purchase of the dwelling.
Settlement eventually occurred in 20xx.
Settlement occurred only a short period outside the 2 year time frame.
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