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Edited version of private advice
Authorisation Number: 1051618652613
Date of advice: 9 December 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 dwelling had been the deceased's main residence prior to passing away.
The deceased was survived by a number of beneficiaries.
One of the beneficiaries, ('A') occupied the dwelling prior to the deceased passing away and continued to do so afterwards.
A dispute arose between the beneficiaries in relation to misappropriation of funds. This dispute was resolved in 20xx without the need for legal proceedings to be commenced.
'A' was reluctant to vacate the dwelling and after many negotiations between the beneficiaries 'A' vacated the dwelling in 20xx.
The dwelling was left in a poor state and required extensive cleaning prior to the dwelling being marketed for sale.
The dwelling was placed on the market in 20xx.
A contract 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
Income Tax Assessment Act 1997 subsection 118-195(1)