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Edited version of private advice
Authorisation Number: 1051582244107
Date of advice: 9 October 2019
Ruling
Subject: Capital gains tax - deceased estate - two year discretion
Question
Will the Commissioner allow an extension of time to XX/XX/XXXX 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 and circumstances
The deceased passed away on XX/XX/XXXX. At the time of their death, the deceased's main residence was Property A.
After the deceased's death, one of their relatives moved into the property and decided to purchase the property from the Estate. A contract of sale was executed within two years of the deceased's death.
Due to actions outside of the executor's control, settlement of the contract was delayed. The property eventually settled approximately a month after the two-year anniversary of the deceased's death.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195