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Edited version of private advice
Authorisation Number: 1051804996964
Date of advice: 15 February 2021
Ruling
Subject: CGT - deceased estate - two-year extension of time
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. 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
Year ended 30 June 20XX
The scheme commences on
1 July 20XX
Relevant facts
The deceased acquired a dwelling. (The dwelling).
The deceased passed away in 20XX. (The deceased)
The dwelling had been the deceased's main residence prior to passing away.
The deceased separated from their spouse in 20XX.
The property settlement was not finalised prior to the deceased passing away.
The right to sell the property was subsequently challenged by the former spouse of the deceased which caused delays in the sale of the dwelling.
Due to ongoing health issues and the challenges to the estate by the former spouse of the deceased, the appointed executor of the deceased estate relinquished the role in 20XX and estate lawyers were appointed a short time later.
The estate lawyers were first required to implement the above-mentioned separation agreement in order to administer the deceased estate. This was a time-consuming process and caused further delays.
The title for the property was released to the Executor in 20xx and the property was placed on the market a short time later.
A contract of sale for the property was entered into promptly. Settlement occurred after a period of time.
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)