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Edited version of private advice
Authorisation Number: 1051623826423
Date of advice: 2 January 2020
Ruling
Subject: Deceased estate - Commissioner's 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 ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The deceased purchased a dwelling prior to 1985 and the dwelling was the main residence of the deceased.
The deceased passed away and probate was granted approximately 12 months later.
The property was readied for sale and a general clean-up was conducted following many years of occupation by the deceased and family.
The property was placed with an agent and a formal offer was received from an outside entity approximately 21 months after the death of the deceased. However, an offer was then received from a relative of the family.
The parties were on track to have the offer accepted before the two year period had expired; however, during final negotiations the purchasing party suffered personal issues.
There were delays in obtaining finance and a new offer and acceptance had to be drawn which was dated approximately three years after the death of the deceased.
During the settlement process the purchaser was suffering health issues and settlement occurred some months later.
The property was left vacant until the property was sold.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 118-195