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Edited version of private advice
Authorisation Number: 1051572947386
Date of advice: 29 August 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 deceased)
The dwelling was the deceased's main residence.
The deceased suffered from a medical condition during the later stages of their life and had accumulated a significant amount of personal possessions.
The dwelling was occupied by the deceased's child for a period of time after the death of the deceased.
The child passed away suddenly in 20xx.
The trustee has experienced some delays in dealing with sale of the dwelling as a result of the sudden death and in preparing the dwelling for sale.
The dwelling was prepared for sale and some repairs were undertaken to the dwelling.
The dwelling was sold only a short period outside of the 2 year period from when the deceased passed away.
A contract for sale was entered into in 20xx.
Settlement occurred 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