| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1051658010655
Date of advice: 17 April 2020
Ruling
Subject: capital gains tax - deceased estate - two year discretion
Question
Will the Commissioner exercise his discretion to extend the two year period under subsection 118-195 (1) of the Income Tax Assessment Act 1997 (ITAA 1997) to disregard any capital gains made on the sale of The Property?
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'
This ruling applies for the following period:
Year ending 30 June 2020
The scheme commences on:
1 July 2019
Relevant facts and circumstances
The Deceased acquired a property at X in XXXX (The Property).
The Property was their main residence until they died. Probate was granted several months later.
The Deceased's friend commenced legal proceedings to challenge the terms of the will. The Property could not be disposed of until the legal proceedings were completed.
Supreme Court Orders were handed down.These orders stated that the Property was to be disposed of and the proceeds distributed as per the terms of the order.
The Deceased's children were previously estranged from them. Following the death of the Deceased, The Executor required them to clean the Property and prepare it for sale. This process added to the time taken to dispose of the Property.
The Property was first placed on the market in XXXX. Settlement occurreda short time later. The sale price was $XXXX.
The Property was sold a short time outside the two year period from when the deceased passed away.
A capital gain resulted from the sale of the property.
Relevant legislative provisions
Income Tax Assessment Act section 118-195(1)