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Edited version of private advice
Authorisation Number: 1051569963198
Date of advice: 21 August 2019
Ruling
Subject: Capital gains tax - deceased estate - 2 year discretion
Question
Will the Commissioner allow an extension of time to 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 dwelling (the dwelling).
The deceased passed away in 20xx.
The deceased passed away suddenly and an investigation was required.
The police did not release the will of the deceased to you until 20xx.
The deceased made a number of handwritten changes to their will just prior to their death.
You commenced the process of applying for probate in 20xx.
The registry required a number of requisitions in relation to the will of the deceased as the deceased made handwritten changes on a will dated 20xx.
The Registrar of Probates made an order in 20xx allowing the grant of probate of the will with the unauthenticated alterations.
When it became apparent that it would be very difficult to obtain a grant of Probate, you decided to rent the dwelling. The dwelling was rented from 20xx until 20xx.
The grant was issued in 20xx.
The dwelling was prepared for sale and settlement occurred shortly after the grant was issued in 20xx.
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