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Edited version of private advice
Authorisation Number: 1051599901826
Date of advice: 25 October 2019
Ruling
Subject: Income Tax - Deceased estate - 2 year discretion
Question
Will the Commissioner allow an extension of time for the administrator to dispose of their ownership interest in the property and disregard the capital gain they make on the disposal?
Answer
Yes. Having considered the 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 acquired a dwelling
The deceased passed away.
The dwelling was the deceased's main residence.
The Public Trustee accepted administration of the estate dwelling.
The property size is less than two hectares.
The dwelling was not used to produce assessable income.
The dwelling could not be disposed within the 2 year time frame as the deceased's will, gave Individual A a right to reside in the dwelling.
Individual A used the dwelling as their main residence from date of death of the deceased until their date of death 201X.
No capital improvements were undertaken on the dwelling from date of Probate to sale of the dwelling.
A real estate agent was appointed in 201X to place the dwelling on the market for sale.
The dwelling was sold shortly after in 201X.
Settlement will occur in 201X.
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
Income Tax Assessment Act 1997 subsection 118-195(1)