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Edited version of private advice
Authorisation Number: 1051737260913
Date of advice: 11 August 2020
Ruling
Subject: Capital gains tax - deceased estate
Question
Will the Commissioner allow an extension of time until XX 20XX for you to dispose of your ownership interest in the dwelling so you can disregard any capital gain you make on the disposal?
Answer
Yes. After considering 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
Your parent passed away in 20XX.
At the time of their death, they were living at a property (The Property).
You and your sibling were executors for your parent's estate.
A coronial inquest was held following the death of your parent and was completed approximately one year after their death.
After the coronial inquest was completed, you applied for probate. Probate was granted in 20XX.
The property was never used to derive assessable income.
No capital improvements were undertaken on the property before it was sold.
The Property was placed on the market shortly after probate was granted. Settlement of the sale of the Property occurred in 20XX.
The Property was sold only a short time outside the two year period from when your parent died.
A small or nil capital gain occurred on the sale of the property.
Relevant legislative provisions
Income Tax Assessment Act subsection 118-195(1)