Edited version of private advice

Authorisation Number: 1051844128795

Date of advice: 10 June 2021

Ruling

Subject: Capital gains tax - deceased estate

Question

Will the Commissioner allow an extension of time to the settlement date 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 ending 30 June 20Xx

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

The deceased died in late 20XX.

The property situated in Australia was purchased by the deceased after 20 September 1985.

The property was used as the main residence of the deceased until death and has not been rented at any time.

There were several significant issues to be overcome before the property could be offered for sale. These issues included a need to remove considerable items collected by the deceased, removal of asbestos and significant difficulties in arranging travel due to pandemic related travel restrictions. These issues caused delays in listing the property for sale despite timely and effective action by the trustees.

The estate then listed the property for sale in less than 2 years after the date of death. A contract of sale was signed in early 20XX and settlement occurred shortly afterwards.

Relevant legislative provisions

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