| Disclaimer 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: 1051710903524
Date of advice: 2 July 2020
Ruling
Subject: Capital gains tax - deceased estate
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.
This ruling applies for the following period
Year ended 30 June 20XX.
The scheme commences on
1 July 20XX.
Relevant facts
The deceased and their child (A) acquired a dwelling (the dwelling).
The dwelling was owned in unequal amounts.
The deceased passed away in 20xx. (the deceased)
The dwelling had been the deceased's main residence prior to passing away.
The executors of the estate are 'A' and 'B'.
Person 'B' suffered a serious medical issue which required extensive hospitalisation and lengthy periods of recovery.
The medical complications had the effect that person 'B' was unable to assist with the sale of the dwelling.
Person 'A' was residing overseas and this made it difficult to organise the dwelling for sale.
Persona 'A' returned to assist with preparing the dwelling for sale, however was not able to adequately complete the process as quickly as anticipated.
The impacts of COVID-19 also impacted on the marketing of the dwelling.
The dwelling was sold and a small capital gain has occurred.
The dwelling was sold a short period outside the 2 years from when the deceased passed away.
Settlement took place 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)