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Edited version of private advice
Authorisation Number: 1051626132966
Date of advice: 15 January 2020
Ruling
Subject: CGT on deceased estate
Question
Will the Commissioner allow an extension of time to XX/XX/20XX 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 owned the property.
The property was purchased by the deceased after 20 September 1985 and was their principal place of residence.
The deceased resided at the property until their death.
The deceased had no spouse, nor did the deceased have any children and died without leaving a valid Will.
The administrators of the Estate are the relatives who are children of the deceased's sibling.
The next-of-kin are the Administrators, and a third relative.
Letters of Administration had to be obtained in order to deal with the sale of the property.
In approximately, XX/20XX an application for Letters of Administration was made by one of the next-of-kin (Administrator A) and consent of the other relatives had to be obtained for that application.
Administrator A has had health issue and has difficulties in getting around.
When Administrator A approached a law firm to assist with administering the estate, they had no idea of the whereabouts of the next-of-kin (Administrator B). The law firm had difficulties locating Administrator B as they were estranged from the family.
Administrator B refused to provide consent to Administrator A being the sole applicant for Letters of Administration, and the process of the application for Letters of Administration had to be recommenced with Administrator B as joint applicant.
Administrator B also has ongoing health issues.
Further delay was caused in completing the Letters of Administration due to the death of the parent of the administrators.
Letters of Administration were finally granted by the Supreme Court on XX/XX/20XX.
The property was company title and the Share Certificate could not be located.
The administrators could not gain access to the Property. Further time elapsed before they were able to gain access to the property, and to apply for and obtain a replacement Share Certificate.
There was further delay due to Administrator A requiring hospitalisation for health issues. They were not contactable during these hospitalisations.
The property was listed for sale in XX/20XX and sold shortly after.
The period from the deceased's death to settlement of the sale of the property was two years and a few months.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 118-195