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Edited version of private advice
Authorisation Number: 1051659731524
Date of advice: 16 April 2020
Ruling
Subject: Income tax - deceased estate - two year discretion
Question
Will the Commissioner allow an extension of time for the executor to dispose of the Property and disregard the capital gain made 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 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The deceased acquired a property before 19XX.
The deceased passed away in 20XX.
Property was the deceased's main residence at the time of death.
A legal dispute with the will had to be settled.
The Court order was granted some two years after the deceased's date of death.
The size of Property is less than two hectares.
The property was not used to produce assessable income.
The property was placed on the market a short time after the Court decision was finalised and was sold shortly afterwards.
A capital gain resulted from the sale of the property.
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)