Edited version of private advice

Authorisation Number: 1051760965530

Date of advice: 29 September 2020

Ruling

Subject: CGT - deceased estate

Question

Will the Commissioner allow an extension of time to Spring 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 ended 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

The deceased died in mid-19XX.

The property situated at Address A, in State A was purchased by the deceased on an unknown date before 20 September 1985. The property was used as the main residence of the deceased. The property land area is less than 2 hectares.

The Will conferred a right-of-occupancy to a child of the deceased who occupied the property until early 20XX when that child went into respite care. Unfortunately, despite an intention to return to the property, the child's health did not recover, and the child was moved to a nursing home. The child died in mid-20XX. Until death the child maintained the property as a main residence.

The estate became complex due to several factors including -

·         An original co-executor had passed away.

·         The other executor had passed away.

·         Another executor had to arrange the estates of the deceased as well as the life tenant.

·         Some beneficiaries had passed away and others had inherited their entitlements.

The property has not been rented at any time by either the owner or the life tenant.

Despite these difficulties the estate was able to offer the property for sale on in mid-20XX. A contract was signed within X weeks, with settlement shortly after.

Relevant legislative provisions

Income Tax Assessment Act 1997 Subsection 118-195(1)