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Edited version of private advice
Authorisation Number: 1051595035230
Date of advice: 22 October 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 and circumstances
The deceased acquired a dwelling (the dwelling).
The deceased passed away in 20xx.
The dwelling was the deceased's main residence.
The Will of the deceased was contested by one of the deceased's children A.
Orders amending the deceased's Will were made in 20xx. These orders amended the interests of the deceased's children A, B, C and D in the dwelling.
Transfer of interests in the dwelling to the deceased's children A, B, C and D occurred in 20xx.
You sold your share of property to C with settlement occurring in 20xx.
Settlement occurred only a short time after the two year period after the deceased passed away.
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