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Edited version of private advice
Authorisation Number: 1051798269772
Date of advice: 21 January 2021
Ruling
Subject: Capital gains tax - deceased estate - two-year discretion
Question
Will the Commissioner allow an extension of time to XX XXXX XXXX for you to dispose of your ownership interest in the dwelling and disregard the capital gain or loss 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 periods:
Year ended 30 June 2018
Year ended 30 June 2019
Year ended 30 June 2020
Year ended 30 June 2021
The scheme commences on:
1 July 2017
Relevant facts and circumstances
The deceased died in late 2017.
The deceased owned a residential property.
They purchased it in the early 2000's.
The deceased owned this property as their main residence.
The property was never rented out.
The property is less than 2 hectares.
The executor was the beneficiary of the property in the Will.
Probate was granted some months after the date of death.
One of the beneficiaries of the estate had their affairs managed by the Public Trustee as administrative guardian.
The Public Trustee advised that the assets of the estate are not to be distributed as the Public Trustee was making a claim against the Estate. This was a Family Provision Application.
The executor sought legal advice that stated they should not sell the property before the matter with the Public Trustee had been resolved.
The matter was resolved on late in 2020 by an order of the Court.
The property was sold shortly after the matter was resolved.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195